Trump Media & Technology Plunges Over 10% Following U.S. Presidential Debate
Shares of Trump Media fell sharply by more than 10% on Friday in the aftermath of the first U.S. presidential debate, marking yet another instance of the extreme volatility that has characterized its stock on Wall Street.
The owner of the Truth Social network saw its shares initially rise 5% at the opening bell, only to decline steadily throughout the day. Despite the setback, the stock managed to close the week with an overall gain of over 18%.
During the debate, President Joe Biden and former President Donald Trump engaged in heated exchanges on a range of issues including abortion, immigration, and the January 6, 2021 Capitol attack. Biden’s performance was viewed as uneven, especially in the early stages, as he attempted to challenge Trump on various fronts. Trump, in turn, responded by asserting falsehoods about the economy, immigration policies, and his involvement in the Capitol insurrection.
Following the debate, political futures markets saw a notable shift, with Biden’s odds of remaining the Democratic nominee dropping by 29%.
Citi analysts commented on Friday that Trump Media & Technology could attract heightened interest based on the debate’s aftermath in the news cycle.
Since its inception in late March, Trump Media’s stock, traded under the ticker symbol “DJT,” has been extraordinarily volatile, akin to other meme stocks known for their drastic price swings driven by retail investor speculation. The stock has seen significant intraday movements, reaching nearly $80 at its peak on March 26. In contrast, the broader market, as measured by the S&P 500, has posted a year-to-date gain of nearly 10%.
In its first earnings report as a publicly traded entity in May, Trump Media reported a loss exceeding $300 million for the previous quarter, underscoring the financial challenges facing the company amid its turbulent market performance.
