Shares of Trump Media & Technology Group (DJT) rose early Friday before erasing gains and plunging by double digits after former President Donald Trump faced off against current Commander in Chief Joe Biden in the first 2024 presidential debate.
Shares of the parent company of Trump’s social media platform, Truth Social, fell about 12% in late afternoon trading.
Debate experts say Biden’s awkward performance in the debate, with a hoarse voice and moments of confusion, could help Trump win in November. Biden’s age of 81 is a hot topic among voters concerned about whether he can continue to govern the country.
“Biden’s bumbling and stumbling performance has reinforced concerns about his ability to serve and triggered a new round of panic within the Democratic Party,” Isaac Boltansky, director of policy research at BTIG, said in response to Thursday’s debate. “Trump won the debate and should be seen as the clear frontrunner this morning, but his behavior and untruths appeared to underscore concerns some voters have about his fitness for office.”
DJT shares have had a bumpy ride in recent months, swinging between highs and lows.
In May, Trump was found guilty of all 34 counts of falsifying corporate records intended to influence the 2016 presidential campaign — a verdict that sent stocks down 5% the day after the conviction.
Trump Media, the parent company of Truth Social, went public on the Nasdaq after merging with special purpose acquisition company Digital World Acquisition Corp.
Shares have fallen about 44% since the company’s public debut in late March.
Trump founded Truth Social after being banned from major social media apps Facebook (META) and Twitter (the platform now known as X) following the January 6, 2021, riots at the Capitol. Trump has since resumed his presence on those platforms, though the former president posted almost exclusively to his Truth Social account during the trial.
In April, Trump Media reported in an updated regulatory filing that revenue was just over $4 million, while net loss was nearly $60 million for the full year ended Dec. 31. The company warned that it expects losses to continue due to greater profitability challenges.
In May, the company reported first-quarter results that showed a $327 million loss, largely related to expenses related to the SPAC deal. The company announced on April 29 that more than 621,000 different shareholders owned shares in Trump Media, noting that the “vast majority” of these were retail investors.
Trump has about a 60% stake in DJT. At current levels of about $32 per share, Trump Media has a market cap of roughly $4.3 billion, giving the former president a stake of about $2.6 billion. Immediately after the company’s public debut, Trump’s stake was worth just over $4.5 billion.
In late April, the stock reached a milestone that netted Trump another $1.2 billion in cash. However, interested parties are still subject to a six-month lock-up period before they can sell or transfer shares.
Alexandra Canal is a senior reporter at Yahoo Finance. Follow her on X @allie_canal, LinkedIn, and email her at alexandra.canal@yahoofinance.com.
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