Trump Media & Technology Group (NASDAQ:DJTWW) experienced a volatile trading session on Friday following the first presidential debate of 2024 between former President Donald Trump and current President Joe Biden. The stock initially jumped but later erased gains, plunging by double digits as the market reacted to the debate.
Debate Performance Impacts DJT Stock
Shares of Trump Media & Technology Group, the parent company of Trump’s social media platform Truth Social, fell about 12% in late afternoon trading. Debate analysts noted that President Biden’s performance, marked by a raspy voice and moments of confusion, heightened concerns about his ability to serve another term, which could potentially benefit Trump’s campaign.
“Biden’s bumbling and stumbling performance amplified concerns regarding his capacity to serve and set off a new round of panic in the Democratic Party,” commented Isaac Boltansky, BTIG director of policy research. “Trump won the debate and should be viewed as the clear frontrunner this morning, but his demeanor and falsehoods appeared to underscore the concerns some voters have with his fitness for office.”
Market Reaction and Historical Context
DJT shares have experienced significant volatility in recent months, fluctuating between highs and lows. In May, Trump was found guilty on 34 counts of falsifying business records related to the 2016 presidential campaign, leading to a 5% drop in DJT shares the day after the conviction.
Trump Media, which went public on the NASDAQ after merging with Digital World Acquisition Corp., has seen its shares fall about 44% since its public debut in late March. Trump founded Truth Social after being banned from major social media platforms like Facebook and Twitter, now known as X, following the January 6 Capitol riots in 2021. Although reinstated on these platforms, Trump primarily posts on Truth Social.
Financial Performance and Investor Sentiment
In April, a regulatory filing revealed that Trump Media reported sales just over $4 million, with net losses nearing $60 million for the year ending December 31. The company expects continued losses amid profitability challenges. First-quarter results in May showed losses of $327 million, primarily due to expenses from the SPAC deal. The company disclosed that as of April 29, over 621,000 different shareholders owned DJT stock, with the majority being retail investors.
Trump retains a roughly 60% stake in DJT. At current levels around $32 a share, Trump Media has a market cap of about $4.3 billion, valuing Trump’s stake at approximately $2.6 billion. Following the company’s public debut, Trump’s stake was initially worth just over $4.5 billion.
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