Sept. 3 (UPI) — Trump Media and Technology Group’s shares hit a new low Tuesday, dropping below $18 for the first time since it began public trading in March.
The stock — which trades under the ticker “DJT” and is behind former President Donald Trump’s Truth Social platform — dropped to $17.89 a share around midday Tuesday, before closing 7% lower at $18.08.
The company’s market value has plummeted nearly 70% since DJT debuted on the Nasdaq in March. Shares fell below $20 for the first time on Friday.
While Trump Media’s current share price cannot be explained by market trends, investors say the stock tends to trade more like a meme stock in that it reacts more to sentiment toward the Republican presidential nominee than it does to the company’s operating results.
When Trump survived an assassination attempt in July, the stock soared about 30% to $42 a share, which was still well below its $62 peak.
In its regulatory filings, the company has said its “success depends in part on the popularity of its brand and the reputation and popularity of” Trump, along with the “adverse reactions to publicity relating to Trump, or the loss of his services, could adversely affect TMTG’s revenues and results of operations.”
Trump currently owns nearly 59% of DJT’s outstanding shares. Trump and other major stockholders are prohibited from selling their shares due to a “lockup agreement,” which is scheduled to expire on Sept. 25.
Trump has not said whether he intends to sell, which could net him more than $2 billion but also could trigger a broader selloff of the stock.
In June, Trump Media shares were down nearly 40% following the former president’s conviction in May on 34 counts of falsifying business documents to cover up an alleged affair with an adult film actress. Trump has denied the affair and pleaded not guilty to all charges. He is scheduled to be sentenced on Sept. 18.
Trump Media officials have blamed short sellers and stock manipulators for the ongoing stock slide. They are urging authorities to seek criminal prosecution if any illegal short-selling is discovered.
The company also amended its registration statement in June, warning investors that Trump would be allowed to use other social media platforms besides Truth Social, after the Republican presidential nominee amassed millions of followers on TikTok.
