Trump Media shares tumbled again, suddenly giving back half of their October rally

Trump Media and Technology Group shares have lost more than half of their triple-digit October gains in just a few days of heavy losses.

Shares of Trump Media, which owns former President Donald Trump’s right-wing social media platform Truth Social, fell 12% in afternoon trading Friday; This capped a week of consecutive double-digit losses.

The company’s stock value has fallen nearly 40% since Tuesday, losing billions of dollars in market value. As a result, Trump, who owns approximately 57 percent of the company, also saw this situation. net worth collapse This week.

This marks a sharp reversal from the eye-popping rise in October. Trump Media’s shares increased by 220 percent Over a 30-day period, the so-called “pre-election euphoria” occurred. As of Friday, shares had a market cap of $6.23 billion, still up 92% from last month.

This comes just days before the US presidential election, where Republican presidential candidate Trump will face Vice President and Democratic candidate Kamala Harris at the polls. National voting While experts are predicting an increasingly tight race, the two candidates are shown to be nearly neck-and-neck.

While it wasn’t immediately clear what led to the selloff, much of the trading in DJT shares has to do with its ties to the former president and his election odds. According to Morningstar’s vice president of research, this makes Trump Media an “affinity stock” that trades on emotion rather than actual business performance (MORNING) John Rekenthaler.

However, Rekenthaler said Trump Media shares “will go to zero” If the Republican candidate loses the White House once again this election cycle. On the other hand, if Trump wins, Rekenthaler believes the stock “can do anything.”

Trump Media itself also stated in its regulatory filings that its “success is dependent in part on the popularity of its brand and the reputation and popularity of Trump” and that “any adverse reaction to (Trump)-related publicity or the loss of its services would adversely affect TMTG’s revenues and results of operations.”

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