Trump Media & Technology Group Corp (NASDAQ:DJT) has reached a post-merger low of $21.83, marking a significant decline since it began trading five months ago. DJT stock has dropped over 56% in the past three months, coinciding with the intensification of the 2024 Republican Presidential campaign. The volatility follows Donald Trump’s suspension from major social media platforms and the subsequent launch of Truth Social, the social networking site backed by Trump Media, where Trump has been active in voicing his opinions.
Election Campaign and Company Challenges
Initially, DJT stock saw gains as Trump was perceived as a stronger candidate compared to President Joe Biden. However, the stock’s upward trend reversed after Biden withdrew from the Presidential race, and the Democratic endorsement shifted to Vice President Kamala Harris. Harris has led Trump in pre-election polls, a development Republican Senator JD Vance has criticized as “fake” while supporting Trump as a viable candidate.
Adding to the stock’s challenges, Trump has faced criticism for sharing fabricated AI-generated images involving American singer-songwriter Taylor Swift, purportedly endorsing Trump for President. Additionally, Trump’s choice to interview with Elon Musk on X instead of Truth Social did not substantially benefit the company. Analysts are also expressing concerns about Trump’s potential defeat in the upcoming election, which could further impact the company’s prospects.
The company reported second-quarter revenue of $0.84 million and a GAAP net loss of $16.4 million. As of the latest trading session, DJT stock was down 1.84%, trading at $21.83.
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