Trump Media Stock Declines To Record Post-Merger Low, Retail Sentiment Sours

Trump Media & Technology Group (DJT), the parent company of Truth Social, saw its shares fall to a new post-merger low of $21.99 on Tuesday, with retail investor sentiment souring on the stock.  

According to Stocktwits, sentiment for DJT has turned bearish, falling from ‘neutral’ (36/100) a day earlier.

The stock hit an intraday low of $22.24 on Monday, slipping nearly 1.3% from its previous low seen in mid-April.

This downturn follows several weeks of declining stock prices, exacerbated by a $16.4 million net loss in Q2 and a 30% drop in revenues.

Since its Nasdaq debut in March under the ticker DJT, following a merger with Digital World Acquisition Corp., Trump Media's stock has plunged over 61%, with a nearly 36% drop in the past month alone.

Shares of the company have been on a volatile ride this year, primarily driven by news events involving former President Donald Trump, the company's majority shareholder.

Recent setbacks include the stock slipping after Trump returned to Twitter (now X) for a conversation with Elon Musk, the fallout from Trump’s legal troubles and debate performance against President Joe Biden.

There was some limited upside movement following the assassination attempt on Trump in July during a rally near Butler, Pennsylvania.

The stock is facing more pressure as the Democratic National Convention convenes in Chicago on Thursday, when Vice President Kamala Harris will formally accept her nomination for the White House race.

Despite Trump Media's rollout of its live TV streaming service, Truth+, retail investors remain pessimistic, with some asking the hard questions. 

As the political landscape heats up, DJT’s stock stands on increasingly shaky ground.

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