What Happened To Trump Media & Technology Group Stock Tuesday?

Trump Media & Technology Group Corp saw a significant drop in its stock prices on Tuesday, closing down more than 11% after the inauguration of U.S. President Donald Trump. Here’s a detailed look at the situation.

Market Reaction

On Tuesday, shares of Trump Media, known for its social media platform Truth Social, experienced a sharp decline. This drop is closely tied to the political climate surrounding Trump and his bid for reelection, as the stock has shown volatility in line with his political standing.

Stock Performance

Despite the notable decrease on Tuesday, the overall performance of Trump Media shares remains positive, with an increase of nearly 14% over the past three months. This rise can be attributed to the boost in confidence following Trump's election win in November. Notably, Trump holds more than a 50% stake in Trump Media, amounting to approximately 114.5 million shares.

Profit-Taking and New Ventures

It's possible that some investors opted to take profits from Trump Media shares on Tuesday, which could have been influenced by funds being redirected towards their newly launched cryptocurrency, the Trump TRUMP/USD meme coin. At the last check, this meme coin experienced an increase of about 18% in the past 24 hours.

Upcoming Financial Results

Trump Media is expected to announce its financial results for the fourth quarter in about two weeks. In the previous third quarter, the company reported a net loss of $19.2 million and generated revenue of only $1.01 million, representing a 6% decline compared to the previous year.

Company Insight

Management at Trump Media has previously indicated that the stock price may not fully reflect the company's fundamentals, largely due to its association with Donald Trump. They acknowledged, "TMTG's success depends in part on the popularity of our brand and the reputation and popularity of President Donald J. Trump. The value of TMTG's brand may diminish if the popularity of President Donald J. Trump were to suffer." This sentiment highlights the close correlation between the company’s stock performance and Trump’s public perception.

Conclusion

As of Tuesday’s closing, Trump Media shares stood at $35.59 after the 11.09% decline. The stock also dipped an additional 0.45% in after-hours trading, according to the latest data.

Photo: Shutterstock.

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