Trump’s shrinking lead in polls and election betting markets in recent weeks has also weighed on stocks, which some retail traders have seen as a bet on whether Trump would win a second term, the Reuters report said.
Trump is the majority owner of Trump Media & Technology Group, whose main asset is the Truth Social app, popular with some conservatives. On Tuesday, Trump marked his return to X with an interview with the platform’s owner, Elon Musk.
Twitter suspended Trump’s account in January 2021, but Musk reinstated it in 2022 after he bought the site and made it private. The former president has made several posts in recent days.
Some 1.3 million people tuned in to watch the lengthy conversation in which the two discussed topics ranging from the attempted assassination of Trump to geopolitics and the economy.
The fact that the conversation took place on X rather than Trump’s rival platform Truth Social highlighted to investors that the latter remains a niche player in the social media landscape, analysts said. “The decision to stream the chat with Musk on X was something of a slap in the face to Trump’s investors, who must feel pretty unloved and a little disrespected,” said Dannie Hewson, head of financial analysis at AJ Bell. Trump frequently posts on his platform Truth Social, which launched in February 2022, but his posts there reach a much smaller audience than on X.
With 83 days to go until the U.S. presidential election on Nov. 5, contracts favoring a Trump victory are trading at 45 cents, with a potential profit of $1 if he wins. Trump contracts were trading as high as 69 cents in mid-July, before President Joe Biden dropped out of the race and was replaced by Vice President Kamala Harris.
Trump Media shares have lost more than half their value since they went public in March. Their market valuation has fallen to $4.73 billion from more than $9 billion earlier this year.
Shares fell 1.9% to $23.54 in trading Wednesday. On April 16, the stock fell to $22.84 after the company said it might sell millions of shares.
“The company’s stock is slowly facing the truth of its upside-down financials,” said Michael Ashley Schulman, chief investment officer at Running Point Capital.
Trump Media on Friday reported another quarterly loss along with a drop in revenue.
“Couple that with the news that revenues were down 30% compared to the previous year and that a large chunk of the money was spent on a licensing deal to power the new streaming service Truth+, and there will be concern about the future of the company if Trump’s popularity declines further,” Hewson said.
Analysts also expressed concern about how stocks would perform if Trump fails to win the presidential election in November.
Frequently Asked Questions
Q1. What is the name of Donald Trump’s media company?
A1. Donald Trump is the majority owner of Trump Media & Technology Group, whose main asset is the Truth Social app, popular among some conservatives.
Q2. How old is Donald Trump?
A2. Donald Trump is 78 years old.
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