The parent company of Donald Trump’s social media platform, Truth Social, saw its stock prices hit a new low on the first day of the Democratic National Convention. Trump Media & Technology Group (trading under the ticker DJT) closed at $22.24 on Monday, a 3.56% drop from the previous close, marking the lowest close since the company went public in March. The previous low was $22.84 on April 16, during Trump’s New York criminal trial, where he was found guilty on 34 counts of falsifying business records.
Since mid-July, Trump Media’s stock prices have been on a near-steady decline. The recent low comes as Trump’s campaign struggles to compete against the Democrats’ new candidate, Vice President Kamala Harris. Earlier this month, the company reported more than $16 million in losses and less than $1 million in revenue for the second financial quarter.
Trump Media, often compared to a meme stock, has experienced volatile price swings, largely driven by retail investors’ attention and coordination. The company was founded in 2021 after Trump was banned from other social media platforms following the January 6 riot at the U.S. Capitol. The company went public through a merger with Digital World Acquisition Corp., a special purpose acquisition company (SPAC). Despite a flashy debut, stock prices have fluctuated wildly, often in line with the news cycle surrounding Trump this year.
Experts have also pointed out that Trump Media’s stock is overvalued by conventional Wall Street standards compared to other social media companies. In May, the company reported a net loss of $327.6 million in the first quarter of 2024, with $770,500 in revenue. In August, it reported more than $16 million in losses and less than $1 million in revenue for the second quarter. Regulatory filings show that the company operated at a loss in 2023, earning around $4 million in revenue while losing over $58 million.