Shares of Donald Trump’s social-media company tumbled on Wednesday following his debate against his presidential election opponent Kamala Harris.
Trump Media & Technology Group Corp, which operates Truth Social and counts the presidential candidate as its top shareholder, slid as much as 18 per cent at the market open in New York for its biggest intraday drop since April.
The move comes as Trump’s odds of winning the election fell to 47 per cent, according to data from betting market website PredictIt.
“What you saw in the betting market is people saying she won the debate, maybe moving up a point or two in the polls, and that’s why DJT is down,” said Matthew Tuttle, chief investment officer at Tuttle Capital Management.
The unprofitable media company’s drop extends a slump that has erased nearly $6 billion in market value since May. Wednesday’s decline puts the stock on track to fall for an eighth straight week and leaves it nearly 80 per cent below its March high.
At times this year the shares have traded as a proxy for Trump’s election odds, rising sharply after an assassination attempt in July, when there was a sharp rise in betting-market odds of him winning a second term.
At other times, it’s traded like a volatile meme stock, swinging wildly on little to no news or fundamental changes to its underlying business.
A spokesperson for Trump Media did not immediately respond to a Bloomberg News request for comment.
Trump Media, which went public earlier this year by merging with a special purpose acquisition company, is also facing another potential headwind: the expiration of a lock-up period. That lock-up period is set to expire as soon as September 19th, enabling insiders – including Trump himself – to start selling shares.
Other stocks seen as affected by the outcome of the election were also active. Among stocks seen as benefiting from a Trump presidency, cryptocurrency stocks followed Bitcoin lower and private-prison operator GEO Group slid 11 per cent.
Meanwhile, renewable energy stocks – seen as benefiting from a Harris administration – soared, with the Invesco Solar ETF rising over 3 per cent. – Bloomberg
