NEW YORK, USA — The stock of Trump Media & Technology Group, TMTG, President-elect Donald Trump’s media company, dropped by more than 20% on Thursday, November 7, 2024, erasing much of the rally it experienced following Trump’s election victory.
After surging 35% in premarket trading on Wednesday as Trump’s path to victory appeared clear, the stock eventually settled at a 5.9% gain by the close of regular trading.
By Thursday morning, however, shares took a sharp downturn, bringing the value back in line with prior levels.
Trump Media & Technology Group which operates the social media platform Truth Social, has seen volatile trading throughout the election period, with its stock price reflecting Trump’s perceived electoral odds.
The media company, majority-owned by Trump, has acted as a proxy for his political fortunes in recent months, seeing sharp price swings on election developments.
Trading under the ticker DJT, TMTG debuted on the public market in March through a special purpose acquisition company (SPAC) merger.
Despite these fluctuations, the company’s financial fundamentals tell a challenging story.
According to an earnings report released on Tuesday, Trump Media & Technology Group incurred a loss of $19.2 million in the third quarter, adding to $58.2 million in losses from 2023 and $28.5 million in losses in the first half of 2024.
Investors seemed to respond to these figures with caution, potentially opting to secure gains after the stock’s recent run-up.
With shares up 105% year-to-date, TMTG’s rally appears buoyed largely by sentiment rather than financial performance.
Analysts suggest that recent profit-taking by investors could be a reaction to the stock’s high volatility and to concerns over the company’s continued quarterly losses, even as Trump prepares to return to the White House for a second term.
