Trump’s Truth Social Stock Crash: What Happened?
If you thought the recent Trump-Harris debate was intense, wait until you hear what happened to Trump Media & Technology Group (TMTG) afterward. The stock took a nosedive—dropping over 16% by Wednesday morning, making it the worst plunge the company has seen since it went public in March 2024. This crash comes after Trump’s shaky debate performance, where he struggled to keep his cool against Kamala Harris, who seemed way more composed and articulate.
Why Did TMTG Stocks Plummet?
Here’s the deal. Trump’s business ventures, especially TMTG, rely heavily on his political popularity. Investors often treat Trump Media stock as a bet on his success in politics. So, when he fumbles in a big debate, like he did on Tuesday, the stock market reacts almost immediately. Political analysts have pointed out that Harris clearly outmaneuvered Trump, pushing him off-topic and leaving him in defensive mode. This poor showing didn’t sit well with Trump’s supporters, many of whom might have sold off their shares, leading to the massive stock drop.
On top of that, TMTG has been struggling financially for a while. The company has lost millions of dollars since last year, and despite Trump’s large social media presence, Truth Social isn’t gaining as many users as platforms like X (formerly Twitter). In fact, the platform only had 7.7 million visits in March 2024, compared to X’s 6.1 billion visits.
What’s Next for Trump Media?
There’s more pressure coming. Trump owns 59% of TMTG, and starting on September 19, insiders, including Trump, will be allowed to sell their shares. If Trump or others begin selling, it could cause another significant dip in the stock. With the upcoming election and Trump’s unpredictable public performances, the future of TMTG looks uncertain. Will he sell off his shares and move on, or is he betting that he can still turn things around?
It’s a wild ride for investors, but if one thing’s for sure, it’s that Trump Media’s fortunes are directly tied to Trump’s political standing. And right now, that standing looks a little shaky.
Key Points:
- Trump Media’s stock dropped over 16% after Trump’s lackluster debate with Harris.
- The company’s financial troubles continue, with major losses reported last year.
- Trump’s political performance directly affects the stock’s value, and further stock sales could be looming(Yahoo Finance)(Absolute News)(Investing.com).