Presidential candidate Donald Trump may be calling the U.S. a “failing” nation. But it’s his own stock market that’s falling apart — while the S&P 500 is soaring.
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Shares of Trump Media & Technology DJT Inc. (DJT) has fallen 75% from the year-to-date high it hit on March 27, translating into a whopping $9.8 billion loss for investors who piled into the moneyed company. That count is based on the company’s current number of shares outstanding, according to an Investor’s Business Daily analysis of data from S&P Global Market Intelligence and MarketSurge.
Even large ETF investors like Vanguard and BlackRock are absorbing some of the losses.
And the pain has only increased when Vice President Kamala Harris entered the race on July 21. Since then, shares have fallen 54%. Since Harris announced her run, Trump Media & Technology investors have lost $3.7 billion.
And the debate only cost Trump investors more.
“The betting markets essentially called the debate a victory for Kamala Harris. According to aggregate betting market data from ElectionBettingOdds.com, Trump was marginally favored to win in November minutes before the debate began, with 50.6% odds versus 47.4% for Harris,” Bespoke Investment Group said. “Today, those odds have essentially flipped, with Harris’ odds rising to 51.7% versus 47% for Trump.”
Who gets the blow?
Donald Trump is the biggest loser from his namesake company, losing $5.7 billion from the stock’s peak alone, and $2.2 billion from Harris’ entry into the race.
Trump is the largest shareholder, with nearly 59% of the company’s outstanding shares. But that leaves other investors holding the remaining 41% of the losses.
Below that is United Atlantic Ventures, which owns nearly 3.9% of the company. That fund is down $377 million from its peak.
But don’t think it’s just someone else’s problem. Big fund companies own some of these failing stocks too.
Vanguard and BlackRock also take hits
Vanguard and BlackRock are the fourth and fifth largest holders of Trump stock. Fortunately, the positions are small.
Vanguard owns a 1.5% stake, much of which is likely in its Vanguard US Momentum Factor ETF (VFMO), ETF.com says. But fortunately, Trump’s stake is less than 0.1% of the fund. Still, Vanguard’s position is worth $144 million less than its peak.
Meanwhile, BlackRock’s iShares Russell Mid-Cap Growth ETF (IWP) owns shares of Trump. In total, BlackRock owns 2.2 million shares, or 1.1% of the company. The value of that stake has since fallen by nearly $110 million.
‘Failing country?’
Given the stock’s deep losses, some investors in Trump Media & Technology are feeling the pain. But with the S&P 500 as a guide, the U.S. is hardly failing.
Shares in the benchmark index of U.S. companies have risen nearly 7%, while Trump’s stock has fallen 75% since March 27. The S&P 500 is about 2% away from a record high.
Who fails?
Trump Media & Tech’s Biggest Losers
| Owner | % of outstanding properties | Loss from peak ($ millions) | Loss due to Harris’ entry ($ million) |
|---|---|---|---|
| Donald Trump | 58.9% | -$5,754 | -$2,170 |
| United Atlantic Enterprises | 3.8% | -377.3 | -142.3 |
| Patrick Orlando | 3.8% | -371.1 | -139.9 |
| Forefront | 1.4% | -144.4 | -54.5 |
| BlackRock | 1.1% | -109.5 | -41.3 |
