Trump Media Stock Plunge: Half of October Gains Wiped Out

Table of Content

• Overview of Trump Media’s Recent Stock Performance
• Analysis of the Recent Sell-Off
• Impact on Trump’s Net Worth
• Election-Driven Volatility in DJT Stock

In just a few days of steap losses, Trump Media & Technology Group stock has surrendered more than half of its substantial gain from October, which had previously seen triple-digit growth.

Shares of Trump Media, the parent company of former President Donald Trump’s right-wing social media platform Truth Social, dropped 17% in Friday afternoon trading, ending a week of consecutive days of steep double-digit declines.

Trump Media’s share value has plunged around 40% since tuesday, wiping out billions in market value. Consequently, Trump, who holds roughly 57% stake in the company, has also seen his experienced a significant drop in his net worth this week.

This downturn comes just days before the U.S. presidential election, where Republican candidate Trump will go head-to-head with Democratic candidate Vice President Kamala Harris. National polls shows a close race, with experts forcasting an increasingly competitive contest as Election Day approaches.

While the exact cause of the sell-off remains unclear, DJT stock’s price movements are largely influenced by its association with former President Trump and his election prospects. That makes Trump Media an “affinity stock,” driven more by sentiment rather than by the company’s underlying business performance, explains John Rekenthaler, vice president of research at morningstar.

Rekenthaler has warned that Trump Media stock could “go to zero” if Trump losses the White House in this election cycle. Conversely, If Trump wins, Rekenthaler believes the stock “could do anything.”