Trump Media & Technology Group Corp experienced a significant drop in the stock market following a debate between Donald Trump and his presidential rival Kamala Harris. The company, which runs Truth Social and counts Trump as its primary shareholder, saw an 18% fall in stock value when the New York market opened, its biggest intraday dip since April.
The decrease came as Trump’s chances of winning the presidential race declined to 47%, as indicated by betting market site PredictIt. After the Harris-Trump debate, it seems the betting market leaned in Harris’ favour, contributing to the shift in the company’s stocks, as explained by Matthew Tuttle, the chief investment officer at Tuttle Capital Management.
This nudges the already-struggling media company into a deeper plunge, having lost nearly $6 billion in market value since May. It is now projected to continue its descent for an eighth consecutive week and is nearly 80% below its record high in March.
Throughout the year, the company’s shares have acted as a barometer for Trump’s election prospects, surging after an attempted assassination in July led to an increase in betting odds for Trump’s re-election. At times, however, share price fluctuations have been erratic and not directly tied to any significant news or fundamental shifts in the company’s performance.
Trump Media, which became public earlier this year through a merger with a special purpose acquisition company, is bracing for another potential hurdle: the end of a lock-up period as early as September 19th. This will allow insiders, including Trump himself, to commence selling shares.
Shares associated with the election outcome have also seen movement. Stocks that are projected to profit from a Trump victory, such as cryptocurrency shares and private-prison operator GEO Group, have both seen declines. Conversely, renewable energy shares, expected to thrive under a Harris administration, have soared, with the Invesco Solar ETF increasing by over 3%.
Trump Media did not instantly respond to a Bloomberg News request for comment.