The Truth Social parent company, Trump Media & Technology Group, experienced its worst day in the stock market on Wednesday, with shares plummeting 22%. This decline resulted in a loss of over $1 billion from former President Trump's net worth, as he is the majority shareholder of the company. The stock, which trades under the ticker DJT, continued to decline on Thursday, with shares down more than 13% to $34.76 as of noon ET.
Despite this recent drop, Trump Media shares had rallied over the past month, leading to a nearly 120% increase. This surge in stock value nearly doubled Trump's net worth to $8 billion, according to Forbes. Earlier this month, Trump Media's value had exceeded $10 billion as Trump's presidential campaign gained momentum against his opponent, Vice President Kamala Harris.
The sudden decline in DJT's stock this week is puzzling, as there have been no major company announcements or notable shifts in polling data for the upcoming presidential election. The stock is popular among retail traders and is viewed as a speculative investment on Trump's chances of winning a second term in office.
Overall, the fluctuations in Trump Media's stock reflect the volatility and unpredictability of the stock market, especially in relation to political events and developments. As the race between Trump and Harris remains tight, investors will likely continue to closely monitor the performance of DJT shares in the coming weeks leading up to the election.