The share price of Trump Media plunged by over 10% on Wednesday, marking a significant setback for the company following former President Donald Trump’s much-criticized debate performance against Vice President Kamala Harris.
The drop comes a day after the highly anticipated presidential debate, where Trump’s performance was widely panned by political analysts across the spectrum.
This decline brings Trump Media’s stock price to its lowest point since the Truth Social app owner, trading under the ticker DJT, became publicly listed on the Nasdaq in late March. The stock had surged earlier in the week, with a 10% increase on Tuesday as investors appeared optimistic about Trump’s debate chances. However, the poor reception of his performance seemed to erase that momentum.
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Trump Media’s stock price has often been seen as tied to Donald Trump’s political fortunes. The company itself has acknowledged that its business model is influenced by Trump’s popularity, with many analysts linking its value to his electoral prospects. Wednesday’s stock drop, following a subpar debate showing, could indicate that investors—many of whom may be Trump supporters—were disappointed with his performance.
During the debate in Philadelphia, Vice President Kamala Harris was widely seen as more composed and articulate, while Trump struggled to stay on topic, frequently reacting to Harris’ attempts to throw him off balance.
“While I don’t think the debate hosts were fair to Donald Trump, Kamala Harris exceeded most people’s expectations tonight,” Elon Musk admitted after the debate.
Political commentators from both sides noted that Harris appeared better prepared, and her team quickly challenged Trump to a second debate immediately after the first one concluded.
Despite Harris’ confidence, Trump seemed uninterested in a rematch. In a post on his Truth Social platform on Wednesday, he reiterated his claim that Harris only wanted another debate because she had “been beaten badly.” He further questioned, “Why would I do a Rematch?”—indicating that a second debate may not take place.
Stock Price Volatility and Trump’s Ownership
Prior to the debate, Trump Media had been experiencing a weeks-long stock decline, which saw shares drop by as much as 75% from their intraday high in March. The company had initially surged during its merger with a blank-check firm that took Trump Media public. However, the downturn has been linked to various factors, including political uncertainty and market conditions.
A key moment contributing to the stock’s volatility was President Joe Biden’s decision to drop out of the 2024 presidential race and endorse Vice President Kamala Harris as the Democratic Party’s presidential candidate. The move shifted the dynamics of the election, presenting Harris as Trump’s primary challenger and potentially reshaping investor sentiment around Trump Media.
Adding to the pressure on the company, insiders—including Trump himself—are expected to be eligible to sell their shares after a lock-up agreement lifts on September 19. Trump owns approximately 57% of Trump Media’s stock, which was valued at around $1.9 billion based on Wednesday’s closing price. It remains unclear whether Trump plans to sell any of his shares once the restriction lifts, but any move in that direction could further impact the stock’s performance.
The connection between Trump’s political standing and the performance of Trump Media underscores the company’s reliance on his electoral prospects. The latest stock plunge may signal growing concern among investors regarding his ability to maintain or grow his political base, especially as the campaign heats up.
Trump Media’s initial success was closely linked to the excitement surrounding Trump’s re-entry into politics and his founding of Truth Social, an alternative social media platform aimed at providing a voice for conservatives. However, the company has faced challenges, both in its operations and in the broader political climate.
With the 2024 election season in full swing, Trump’s media ventures—especially Trump Media—are likely to see continued volatility as investors closely track his political performances and public reception. Should Trump bounce back in future debates or gain ground in the polls, it’s possible that the company’s stock could recover. Conversely, continued political missteps may compound the stock’s decline.
For now, the drop in Trump Media’s share price reflects the high stakes tied to Trump’s political fortunes, with many investors betting on his future electoral success—or failure.