Donald Trump’s media company saw its shares drop sharply on Wednesday, erasing all the gains made this year, according to the BBC.
The stock fell over 6%, bringing the price below $17, which is lower than it was at the start of 2024. Earlier this year, the share price had risen during Trump’s criminal trial in April, but it has now fallen more than 70% from its highest point.
The BBC reports that despite this drop, the company, which runs the Truth Social platform, is still valued at over $3.3 billion, though its revenues are shrinking and losses are increasing.
Trump’s success in the January Republican primary had initially boosted interest in the company, leading to a surge in demand for shares of Digital World Acquisition Corp., a company created to merge with Trump Media.
As the BBC explains, the share price jumped again in March when the merger was finalized but has been very unpredictable since then. In July, the stock hit another high after Trump survived an assassination attempt and before President Joe Biden exited the race, but the price has since declined.
The BBC also notes that the company is nearing a critical point where Trump and other early investors can start selling their shares, which could lead to further price drops. Trump’s stake, which was once worth over $6 billion, is now valued at around $2 billion.
Analysts have warned that this stock is more influenced by sentiment than financial performance, labeling it a “meme stock,” as reported by the BBC.
https://www.bbc.com/news/articles/c93p2v72dpdo