Truth Social parent company shares close at record low after Trump-Harris debate
Trump Media & Technology Group, the parent company to former president Donald Trump’s social media platform Truth Social, closed at a record low following Tuesday night’s presidential debate.
Trading under the ticker DJT, shares fell more than 10% Wednesday to close at $16.68.
USA TODAY has previously reported that Trump Media has become a way for investors to bet on Trump’s chances to win the presidential election against Kamala Harris.
"Changes in stock prices are always about expectations," said Mike Stegemoller, a finance professor at Baylor University in Waco, Texas. "It's pretty fair to say that, probably, expectations were that he was going to do better last night than he did."
Trump Media regulatory filings say the company's success depends on Trump's reputation, warning that its brand “may diminish” if the former president's popularity wanes. Shares have been popular with individual investors looking to show support for Trump.
Another potential factor to the share's downward trend, according to University of Florida finance professor Jay Ritter: the company indicating that it may issue up to $2.5 billion worth of new shares as part of a deal inked with Yorkville Advisors in July.
"That selling pressure might also be exerting downward pressure on the price," Ritter said.
The stock has been volatile since Trump Media went public in March via a merger with a blank-check company, falling roughly 75% since its peak closing price in March.
Trump owns about 60% of Trump Media's stock, valued at nearly $2 billion when markets closed Wednesday. A six-month lockup period that has prevented him from selling off his shares is set to end as soon as next week.
While a selloff could help Trump pay off his legal bills, it could also flood the market and drive share prices down further. The Trump campaign did not immediately respond to a request for comment on whether Trump intends to sell his shares.
Contributing: Jessica Guynn, USA TODAY
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