Add Trump Media to List of Debate Losers

Stock is trading at lowest-ever intraday level
By Rob Quinn,  Newser Staff
Posted Sep 5, 2024 5:54 AM CDT
Updated Sep 11, 2024 10:30 AM CDT
Trump Media's Gains for the Year Wiped Out
Donald Trump's Truth Social account.   (AP Photo/John Minchillo, File)
UPDATE Sep 11, 2024 10:30 AM CDT

Add Trump Media to the list of losers in the wake of Tuesday night's presidential debate. NBC News reports shares dropped more than 17% Wednesday morning, to its lowest-ever intraday level. As of this writing, it's trading down 16.86%, at $15.49. Shares had been up by as much as 10% during Tuesday trading in advance of the debate. The New York Times observes that "the company's stock has traded as something of a proxy for Mr. Trump's prospects in the November presidential election ... [and] Wall Street gave a thumbs down" to Trump's debate performance.

Sep 5, 2024 5:54 AM CDT

After hitting new lows earlier in the week, Trump Media shares fell another 6.1% on Wednesday, wiping out all the stock's gains for the year. The stock, which hit a high of $79.38 after the merger with shell corporation Digital World Acquisition Corp. in March, closed at $16.98 Wednesday. DWAC shares started the year at $17.50. But the company still has a market value of around $3.5 billion, which the BBC notes is "a hefty sum for a small company with shrinking revenue and growing losses." The company's main product is the Truth Social platform.

Donald Trump's majority stake in the company is worth around $2 billion, the Guardian reports, down from more than $6 billion at its peak. The Trump Media sell-off was caused by Trump's return to posting on X, worries that he will sell off his shares when a "lock-up" period expires this month, and Kamala Harris' rise in the polls, according to the Wall Street Journal. The lock-up period could expire as soon as Sept. 19, which would allow other company insiders to sell their shares even if Trump holds on to his, reports CNBC. (More Trump Media and Technology Group stories.)

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