DJT: Analyzing Donald Trump’s Business Career Amid Stock Decline
DJT Stock Trajectory and Market Concerns
DJT stock has been on a downward trend for weeks, hitting new low after new low for much of August. As the markets opened after Labor Day weekend, Trump Media sank even further.
- Shares of Trump Media, the company behind former President Donald Trump’s Truth Social, dropped more than 8% Tuesday afternoon to a new post-merger low of $17.72.
- Since its Nasdaq debut on March 26 under the ticker DJT, the company’s market value has plunged nearly 69%.
The Implications of the Lockup Period
This decline coincides with the approaching end of the six-month lockup period, which required Trump to hold onto his shares for 180 days following its merger with Digital World Acquisition Corp. (SPAC).
- This situation allows the former president to sell his stake in the company for a considerable profit, dependent on current share values.
- Analysts have likened DJT to a “meme stock,” such as GameStop, due to trading being driven largely by sentiment.
At the height of its hype post-debut, Trump Media had a market value of around $8 billion, which has now dropped to $3.69 billion.
In recent weeks, DJT stock has also been perceived as a barometer for Trump’s election odds, with shares traded to express investor support during the peak election cycle.
According to Morningstar’s John Rekenthaler, DJT stock could “go to zero or something close” if Trump loses in the upcoming election.
Much of Trump Media’s market performance is tied to Trump’s brand, and adverse reactions to Trump could negatively impact revenues and operations.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.