Former President Donald Trump's social media stock, owned by Trump Media & Technology Group, experienced a significant setback on Wednesday, with a 22.3% plunge in share price. This drop marks the company's worst one-day loss since going public in March, surpassing a previous loss of 21.5% in April.
At the close of trading on Tuesday, Trump's stake in the company was valued at approximately $5.9 billion. However, by the end of Wednesday's trading session, the value of his shares had fallen to $4.6 billion, resulting in a staggering $1.3 billion loss in net worth in just one day.
The exact cause of this sudden reversal for Trump Media remains unclear, as the company did not release any significant news that could explain the sharp decline. Some traders attribute the steep selling to technical factors and a loss of momentum for what has become a meme stock.
Throughout the year, Trump Media's stock has exhibited extraordinary volatility, with dramatic movements occurring without the need for official corporate announcements. Prior to Wednesday's downturn, the stock had been on a continuous upward trajectory.
Between September 23 and Tuesday's close, Trump Media's stock had surged fourfold, driven by speculation on Wall Street regarding the potential outcome of the upcoming election.
