The stock slipped again Wednesday, falling 7% to $30.62, extending Tuesday’s losses as the presumptive Democratic nominee hit the campaign trail.
Harris, whose campaign says she has secured the Democratic nomination, opened up a marginal lead over Donald Trump after President Joe Biden’s exit from the race, according to a Reuters/Ipsos poll. The former president's campaign to retake the White House has supercharged his social media company .
Trump Media trades heavily on its namesake’s fortunes and less on company fundamentals. Its flagship platform, Truth Social , is Trump’s bullhorn of choice.
Despite losing money and having little revenue, Trump Media boasts a market cap of nearly $6 billion. The company stock trades under the vanity ticker DJT.
FILE PHOTO: The Truth social network logo is seen displayed behind a woman holding a smartphone in this picture illustration taken February 21, 2022. Dado Ruvic, REUTERS
Volatility has been the hallmark of the stock since the company went public earlier this year, soaring as high as $79.38.
As of July, Trump held 114,750,000 shares of Trump Media common stock. Trump could sell some shares as early as September, potentially netting billions.
Uncertainty has shrouded the Trump Media stock since it began trading in March after the merger with shell company Digital World Acquisition Corp.
In the competition for advertising dollars and eyeballs against big-name social media companies like Facebook owner Meta, TikTok and Google’s YouTube, Trump Media is a distant laggard.
“People are way too bullish on Trump at this point,” Tastylive founder and CEO Tom Sosnoff told Yahoo Finance Executive Editor Brian Sozzi on his Opening Bid podcast.
“This thing is going to go back and forth” and could be a money-losing trade, Sosnoff warned.
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