It was the first day of the Democratic National Convention, and it seemed that positive vibes were not on the side of former President Donald Trump, as the stock prices of the parent company of Truth Social hit a new low.
On Monday, the stock of Trump Media & Technology Group closed at $22.24, marking a significant decline from the previous close. Compared to other closing prices since going public in March, Monday's close was the lowest.
The last significant drop in the company's stock occurred during the second day of Trump's trial in New York, where the jury found the Republican nominee guilty of 34 counts of falsification.
According to USA Today, Trump Media has experienced a steady decline in stock prices since mid-July. The new low comes amid the campaign's struggle against the new Democratic candidate, Vice President Kamala Harris. The company revealed that it has already lost $16 million and earned less than a million in the second quarter. USA Today reached out to Trump Media, but the company did not respond.
Trump founded Truth Social in 2021 after being banned from major social media platforms following the January 6 U.S. Capitol riot. In March, it went public through a merger with Digital World Acquisition Corp. Despite a strong launch, the company's stock prices have been volatile, largely influenced by issues surrounding Trump.
Experts have weighed in on the stock price of Trump Media, noting that it was "overvalued," Forbes reported.
In May, filings revealed a $327.6 million net loss for the first quarter of 2024, with revenue only around $770,500.
In August, second-quarter losses were reported at $16 million, with revenue below $1 million. Regulatory filings show that Trump's company has been operating at a loss in 2024. Overall, the company generated about $4 million in revenue but lost more than $58 million.
