Shares of Trump Media and Technology Group (DJT) experienced a significant drop on Monday after former President Donald Trump reactivated his account on X, the platform formerly known as Twitter. This move comes ahead of a scheduled live conversation between Trump and X owner Elon Musk.
Key Takeaways
- Trump Media stock fell over 5% following Trump’s return to X.
- The stock has been volatile, especially with the upcoming presidential election.
- Trump Media reported a quarterly loss, contributing to the stock’s decline.
Market Reaction
The stock market reacted swiftly to Trump’s return to X. Shares of Trump Media and Technology Group closed down around 5% at $24.88. This decline highlights the stock’s volatility, particularly as the November election approaches. Many individual investors have bought the stock in hopes that a Trump victory would boost his social-media platform.
Financial Performance
Trump Media & Technology Group reported another quarterly loss, which further impacted its stock price. The company saw its losses narrow to 12 cents a share compared to a loss of 17 cents a share in the same quarter last year. Net loss fell to $16.4 million from $22.8 million a year earlier, with about half of the loss tied to legal costs, including those from its reverse merger with Digital World Acquisition in March.
Net sales fell 30% to $836,000, marking the third straight quarter of roughly $800,000 in revenue. Operating costs soared to $19.5 million from $4.9 million a year earlier. The stock has plummeted nearly 69% since hitting a high of $79.38 in March.
Broader Market Context
The broader stock market also saw mixed results on Monday. The Dow Jones Industrial Average closed lower, while the Nasdaq managed a slight gain. The S&P 500 was virtually flat. Concerns over potential geopolitical conflicts and upcoming inflation data contributed to the market’s overall cautious sentiment.
Upcoming Events
Trump is scheduled to participate in a live conversation with Elon Musk on X at 8 PM ET tonight. This event is highly anticipated and could further impact the stock’s performance. Investors are closely watching for any statements that could influence market sentiment.
Conclusion
Trump Media’s stock decline following Trump’s return to X underscores the volatility surrounding the company, especially with the upcoming presidential election. The company’s financial struggles and broader market conditions also contribute to its uncertain future.