Add Trump Media to List of Debate Losers

UPDATE Sep 11, 2024 10:30 AM CDT

Add Trump Media to the list of losers in the wake of Tuesday night's presidential debate. NBC News reports shares dropped more than 17% Wednesday morning, to its lowest-ever intraday level. As of this writing, it's trading down 16.86%, at $15.49. Shares had been up by as much as 10% during Tuesday trading in advance of the debate. The New York Times observes that "the company's stock has traded as something of a proxy for Mr. Trump's prospects in the November presidential election ... [and] Wall Street gave a thumbs down" to Trump's debate performance.

Sep 5, 2024 5:54 AM CDT

After hitting new lows earlier in the week, Trump Media shares fell another 6.1% on Wednesday, wiping out all the stock's gains for the year. The stock, which hit a high of $79.38 after the merger with shell corporation Digital World Acquisition Corp. in March, closed at $16.98 Wednesday. DWAC shares started the year at $17.50. But the company still has a market value of around $3.5 billion, which the BBC notes is "a hefty sum for a small company with shrinking revenue and growing losses." The company's main product is the Truth Social platform.

Donald Trump's majority stake in the company is worth around $2 billion, the Guardian reports, down from more than $6 billion at its peak. The Trump Media sell-off was caused by Trump's return to posting on X, worries that he will sell off his shares when a "lock-up" period expires this month, and Kamala Harris' rise in the polls, according to the Wall Street Journal. The lock-up period could expire as soon as Sept. 19, which would allow other company insiders to sell their shares even if Trump holds on to his, reports CNBC.