Trump Media stock has slipped as the odds for a Donald Trump victory in the Presidential election have dwindled.
Shares of parent company Truth Social fell to the lowest level after the merger of 21.33 USD/share on August 21, before recovering in the morning trading session of August 22.
It is known that this decline is due to the decreasing odds of Mr. Trump being re-elected as US President in November. According to PredictIt, the former President’s chances of winning the White House race have dropped from 69% last month to 47%.
In some ways, DJT stock has become like a bet on Trump’s chances of winning. The stock soared in mid-July, when the failed assassination attempt on Mr. Trump raised expectations that he would win.
Mr. Trump continuously received sad news: With Ms. Kamala Harris taking the lead, Trump Media shares fell to a record low – photo 1
Mr. Donald Trump and Ms. Kamala Harris
However, the appearance of Vice President Kamala Harris in the race pushed stocks back down. Ms. Harris has revived the Democratic Party’s chances of winning the presidency, which had slipped sharply under President Biden. Currently, she is increasingly gaining an advantage over Mr. Trump in polls.
This week has become especially unfavorable for Trump as all attention is focused on the Democratic National Convention.
Stocks also fell as Mr. Trump returned to X, formerly Twitter, a platform from which he was temporarily banned in 2021. His return last week included an interview with X CEO Elon Musk .
Some investors may find Trump’s return disappointing, as Truth Social was billed as an alternative to Twitter.
Meanwhile, Trump Media cannot rely much on its own performance, because the company is not profitable and has become a famous meme stock.
The company posted a loss of $16 million in its latest earnings report and a sharp decline in quarterly revenue.
Falling shares are not a welcome sight for Mr. Trump, who owns about 60% of the company.
The former President has given no indication that he will sell his shares, yet he is facing huge legal fees. Lawsuits and prosecutions against Mr. Trump have amounted to more than half a billion dollars in fines.
