Shares of Trump Media and Technology are lingering near record lows as Donald Trump’s election prospects decline.
Shares Plummet Amid Declining Election Odds for Trump
Trump Media and Technology Group shares have hit record lows as election odds for former President Donald Trump continue to dwindle. On Tuesday, the stock fell to a post-merger low of $21.33, though it saw a slight recovery during Wednesday’s trading session.
This downturn in stock value mirrors the declining odds of a Trump victory in the upcoming November presidential election. According to betting market PredictIt, Trump’s chances of securing the presidency have plummeted from 69% last month to just 47% currently.
In many ways, Trump Media’s stock performance has become closely tied to the former president’s political prospects. The stock surged briefly in mid-July following an attempted assassination on Trump, which temporarily boosted expectations of his electoral success.
Kamala Harris’ Rising Momentum and Its Impact on Trump Media
The recent emergence of Vice President Kamala Harris as the Democratic candidate has significantly impacted Trump Media’s stock performance. Her growing momentum has revived the Democratic Party’s chances of winning the presidency, which had been flagging under President Joe Biden. Harris now holds a 56% implied probability of victory, gradually surpassing Trump in various polls.
This week, the focus on the Democratic National Convention has further weakened Trump’s position, contributing to the ongoing decline in Trump Media shares.
Challenges Ahead for Trump Media and Its Investors
In addition to the political landscape, Trump Media has faced challenges related to Trump’s return to X, formerly known as Twitter. The former president’s reappearance on the platform, where he conducted an interview with X CEO Elon Musk, has not provided the boost some investors had hoped for. Truth Social, marketed as an alternative to Twitter, has not benefited from Trump’s return to his former platform.
Financially, Trump Media is struggling, posting a $16 million loss in its latest earnings report and experiencing a decline in quarterly revenue. The company, often regarded as a meme stock, remains unprofitable, adding to investor concerns.
The drop in share value is particularly troubling for Trump, who owns approximately 60% of the company. While regulations have prevented insiders from selling their stakes for six months since March, this restriction will lift on September 20th. Although Trump has not indicated plans to sell his shares, mounting legal fees—totaling over half a billion dollars in penalties according to Bl.
