Shares of Trump Media & Technology Group suffered one of their steepest daily declines on Wednesday, falling sharply a day after Democrats recorded major victories in the US midterm elections.
The company’s stock dropped by 24 per cent to close at $4.49, marking its lowest price since the parent company of Truth Social began trading publicly.
Trump Media’s performance on the stock market has often been viewed as an indication of US President Donald Trump’s popularity. However, the company’s shares have experienced an accelerated decline in recent months amid growing quarterly financial losses.
Following Wednesday’s slump, the stock has lost more than 90 per cent of its value compared with its closing price on March 26, 2024, its first day of trading.
At the time of its stock market debut, Trump’s stake in the company was estimated to be worth approximately $6bn. Its value has since fallen to slightly above $500m.
The company is also facing the possibility of increased scrutiny from Democrats, who have strengthened their position in Congress following the midterm elections.
With greater influence in both chambers, Democratic lawmakers could launch investigations into the business activities of Trump and members of his family.
One area likely to attract attention is Trump Media’s plan to sell investment firms advance access to Trump’s posts on Truth Social.
The arrangement would allow participating financial firms to receive the president’s social media updates before they become publicly available, potentially enabling them to execute trades based on the information.
The proposal attracted criticism from several Democratic lawmakers shortly after it was announced, with some arguing that it could give selected investors an unfair advantage over other market participants.
Other Democrats also introduced legislation seeking to prevent Trump Media from commercialising early access to the president’s social media posts.
