Trump Media Shares Plummet After Debate: Is Wall Street Losing Faith?

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Following the September 10 debate between Donald Trump and Kamala Harris, Wall Street reacted swiftly—and not in Trump’s favor. In fact,  Trump Media shares  (known as Trump Media & Technology Group or(TMTG), which owns Truth Social, plummeted by as much as 17% before closing with a 10% loss. This marked the lowest point for TMTG’s stock since it went public in March. The market’s reaction appears to be a direct response to Trump’s widely criticized debate performance, which investors took as a sign that his political fortunes may be faltering.

Investors' Fears Grow

Trump’s media venture, which trades under the ticker symbol “DJT,” is heavily tied to the former president's public image and political trajectory. When Trump performs well on the political stage, his media company’s stock often sees gains. On the other hand, negative news about Trump or poor public performances tend to drive Trump media shares downward.

Matthew Tuttle, CEO of Tuttle Capital Management, noted that the market perceived Harris as the winner of the debate. This shift in perception caused a significant sell-off in DJT stock as investors reacted to the idea that Trump’s chances of returning to the White House may be slipping. For many, this sell-off is a critical moment in the TMTG story. As Michael Block of AgentSmyth pointed out, DJT isn’t a typical growth or value stock; rather, it’s a “story stock.” When the story doesn’t favor Trump, the stock takes a hit.

What Does This Mean for Trump Media Shareholders?

For DJT investors, this sell-off represents a significant turning point. The former president himself holds 114.75 million Trump media shares, making him the dominant shareholder. His net worth, which once stood at over $6 billion, has been severely impacted by the stock’s decline. Since May, Trump’s stake in the company has dropped from $6.2 billion to approximately $1.9 billion—a staggering loss of value for the company’s figurehead.

To make matters worse, Trump is currently restricted from selling his shares due to a lock-up agreement that expires later this month. While Trump will soon have the opportunity to offload some of his shares, experts agree that it would be nearly impossible for him to sell a significant portion without further driving down the price of Trump media shares.

A Broader Loss of Faith?

The reaction of Wall Street to Trump’s debate performance raises an important question: are investors turning their backs on Trump? With DJT stock continuing its downward trajectory and investors pulling away, it’s becoming clear that Trump’s once-ironclad grip on his media company is weakening. His political standing, often reflected in the Trump media shares’ movements, has become a liability rather than an asset for his media venture.

The sell-off after the debate is in stark contrast to Trump Media’s brief rally earlier in the week. Prior to the debate, DJT had risen by 9%, reflecting optimism among investors that Trump might deliver a strong performance. But following the debate, the stock saw its worst one-day drop since June 28, further cementing fears that Trump’s influence might be waning.

What’s Next for The Donald and Trump Media Shares?

For Trump, the near-term future of TMTG looks uncertain. If DJT’s stock continues to plummet, Trump’s wealth and influence within the media world could face additional blows. Given the company's lack of earnings and reliance on Trump’s political relevance, this sell-off could signal a deeper problem for owners of Trump media shares.

While some investors may view this as a buying opportunity, others see the writing on the wall. Trump’s performance, both in the debate and as the central figure of TMTG, has fallen under heavy scrutiny. With the expiration of the lock-up agreement looming, the next few weeks will be crucial for DJT shareholders, especially Trump himself, who stands to lose even more if the stock continues its descent.

All Eyes on Trump as Stock Lock Up Expiry Nears

In the coming days, all eyes will be on Trump and his next moves—both on the campaign trail and within his media empire. Will he be able to recover, or has the market finally started to lose faith in one of its most controversial figures? Only time will tell.

Did you invest in Trump Media & Technology Group? How are you feeling now about your shares’ drastic drop in value? Share your thoughts here.

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