Trump Media Shares Lose 2024 Gains Amid Market Volatility

Donald Trump’s media company experienced a significant drop in share value on Wednesday, erasing the gains accumulated earlier in the year. The decline, exceeding 6%, pushed the share price below $17, which is now lower than its value at the start of 2024.

The company’s stock, which had peaked in April during Trump’s criminal trial, has plummeted by over 70% from its high. Despite this drastic decrease, the firm, which operates the social media platform Truth Social, still maintains a market valuation of over $3.3 billion. This remains a substantial figure for a company facing shrinking revenues and mounting losses.

Trump Media’s stock initially gained traction with the boost in Trump’s political fortunes. His victory in the January Republican primary fueled interest in the company, and investors flocked to purchase shares of Digital World Acquisition Corp. (DWAC), a publicly traded shell company designed to acquire Trump Media. This enthusiasm continued to grow when the merger between DWAC and Trump Media was officially completed in March.

The share price reached a high in July, a period marked by significant events such as Trump’s survival of an assassination attempt and President Joe Biden’s withdrawal from the presidential race. However, the stock has since experienced a downward trend, reflecting broader market volatility.

This decline has intensified as the company nears a pivotal moment when Trump and early investors will be eligible to begin selling their shares. Currently, Trump’s stake is valued at approximately $2 billion, a stark contrast to its previous value of over $6 billion just a few months ago.

Market analysts had cautioned investors about the potential for substantial fluctuations in Trump Media’s stock value. They characterized it as a “meme stock,” driven more by speculative sentiment than by the company’s financial fundamentals. This volatility underscores the risks associated with investing in stocks influenced by political and media factors rather than traditional financial metrics.