Donald Trump's media company, Trump Media & Technology Group (DJT, Financial), has experienced a significant stock decline, with shares dropping 36% over the past three trading days, wiping over $4 billion off its market value. This shift reflects a drastic market sentiment change from betting on Trump's success to betting on Harris.
With only a few days remaining until the U.S. presidential election, DJT shares have been highly volatile, reflecting growing uncertainty about Trump's chances. After falling 22% and 12% on Wednesday and Thursday respectively, DJT shares further declined by 14% on Friday. The company's valuation plummeted from $5.9 billion to $3.5 billion in total.
The stock's performance highlights the binary nature of DJT as it hinges heavily on Trump's electoral prospects. Steve Sosnick, Chief Strategist at Interactive Brokers, noted that meme stocks like DJT are susceptible to momentum shifts. The recent market dip represents negative sentiment around Trump's chances, contrasting with the earlier surge when markets favored a Trump win.
Previously, Trump's reelection odds seemed favorable with prediction platforms like Polymarket showing higher chances for Trump over Harris. This optimism had propelled DJT stocks to quadruple from September 23 to the close on Tuesday, briefly valuing Truth Social over $1 billion, surpassing Musk's social network platform X’s implied valuation.
Despite the rapid decline, DJT’s fundamentals have not improved to support its stock price. The company reported a Q2 net loss of $16.4 million and a revenue of $837,000, marking a 30% year-over-year decrease. Compounding troubles, DJT’s COO resigned in September, further unsettling the company’s prospects.
