Shares of Trump Media, which owns Truth Social, fell to a record low on August 19, 2024; the shares closed at $22.24 per share. This is the lowest point recorded since the company’s merger and its debut on NASDAQ in April.
The declines are coming at a time when Donald Trump, the majority stakeholder of the company, has been overtaken by major events. The price went down, even though it surged following his official nomination and was very close to being shot, but now faces a lot of upheavals.
For the quarter ending June 30, 2023, Trump Media reported losses of over $16 million with minimal revenues of about $837,000. Its delayed merger with Digital World Acquisition Corp. was responsible for half of the loss, as stated by the company.
The downward movement of this stock coincided with President Joe Biden’s withdrawal from the presidential race while endorsing Vice President Kamala Harris, who leads him based on betting markets.
As stated in regulatory filings, Trump’s popularity is key to Trump Media’s success. To supporters, it always looks like a way to bet on the election chances of the ex-president.
Despite limited revenue amounts, it comes up with almost $4.5 billion in capitalization as a result of share price.
