Hidden in plain sight in the first annual report released by the parent company of Donald Trump’s Truth Social platform was an inescapable statement of truth.
Published, perhaps fittingly, on April 1 by Trump Media and Technology Group, the report stated: “TMTG’s brand value could decline if President Trump’s popularity were to suffer.” This fact was cited as a “risk factor” for owning the company’s stock.
And here we are. Since July 21, when President Joe Biden ended his reelection campaign and endorsed Vice President Kamala Harris to run against Trump, the stock has been in free fall.
TMTG may have no meaningful recourse if President Donald J. Trump downplays its future use of Truth Social.
Trump Media and Technology Group Recognizes Limits of Donald Trump’s Duty to Use His Own Social Media Platform
Since then and through Tuesday, shares of the company that bears Trump’s initials (DJT) as its ticker symbol have lost nearly 39% of their value. (The broader stock market, as measured by the Standard & Poor’s 500 index, has gained nearly 2% over the same period.)
The stock has gained in daily value only five times during that span and lost ground 17 times. The stock closed Tuesday at $21.42, down 82 cents, or 3.71%, after falling 3.56% the day before.
In the context of DJT’s history as a publicly traded company, that’s not so remarkable. Measured from its March 26 IPO closing price of $57.99, the stock has fallen about 63%. Measured from its peak of $79.38 that day before pulling back, the loss is 73%. Take your pick; either one of those calculations is the dictionary definition of “ugly.”
It’s entirely possible that DJT will have recovered some or all of its daily decline by the end of Tuesday’s session, and even break out of the long-term rut it currently appears trapped in. The stock’s volatility has made GameStop appear like a sober and stable financial asset.
That being said, the headwinds are strengthening, although they have never been a secret.
The main obstacle, of course, is the one announced in this annual report: Trump himself. Since Biden’s withdrawal upended the presidential race and thrust Kamala Harris into the forefront, Trump’s chances of winning the November election have faded significantly.
At the same time, Trump’s rhetoric and behavior on the campaign stage have become wilder and more febrile. His standing among the MAGA faithful may have remained strong, but his appeal among independent voters appears to have diminished—it certainly hasn’t been strengthened. Given that DJT is seen as a proxy for his campaign, its decline in value is not surprising.
But others…
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