The former US president Donald Trump owns a majority stake in Trump networking & Technology Group, whose shares fell to all-time lows on Tuesday in response to his recent return to the competitor social networking platform X. The price of Trump Media’s shares fell by more than 4%, to a lower value of $21.33. The stock experienced losses for the eighth straight session, including at $21.42, down 3.7%. The stock has been negatively impacted by Trump’s narrowing advantage in surveys & election betting markets during the recent weeks, which some retail traders have interpreted as a wager on whether Trump will win a second term.
The Company’s Market Worth Has Decreased
“I’ve always considered Truth Social & DJT as a means of voting rather than an investment vehicle,” stated Lou Basenese, the chief market strategist and president of MDB Capital located in New York. “The valuation failed to make any sense in context of the fundamentals.” The stock had risen to an all-time high of $79.38 on March 26 when it made its Nasdaq debut, following a merger with Digital World Acquisition Corp., a company that writes blank checks. Trump Media, whose primary product is the Truth Social app, revealed earlier this month that it had lost $16.4 million on a quarterly basis and only made $837,000. The company’s market worth has decreased from above $8 billion early this year to roughly $4.3 billion.
When the lockup period of the insider ends next month, Trump is anticipated to be qualified to start cashing out his almost 60% interest, or 114.75 million shares, in his social media company. Since the race is close and his chances of victory have decreased, it has always traded in accordance with his chances of winning or losing. Additionally, Basenese stated, “I believe it’s reaching record lows because you’re facing the insider lockup.”
Trump Started Posting Last Week
For the first time in almost a year, Trump started posting last week on the X platform in tandem with an interview with Elon Musk, the platform’s owner. In recent weeks, Trump’s significant lead against the Democratic nominee for vice president, Kamala Harris, has evaporated in polls. Contracts for a Harris win are currently trading at 56 cents on the PredictIt political betting site, with a possible $1 payment, with 78 days till the election on November 5. Trump contracts now only cost 46 cents, compared to 69 cents in the middle of July.
