Trump Media experienced a more than 10% decline after the initial U.S. presidential debate, showcasing the volatility that has characterized its stock on Wall Street.
The owner of social networking site Truth Social saw its shares rise by 5% at the opening bell, only to drop significantly throughout the day. Despite this, the shares ended the week with a gain of over 18%.
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Biden’s performance was largely seen as uneven, especially in the beginning. He repeatedly attempted to challenge Trump, who responded to Biden’s criticisms with false claims about the economy, illegal immigration, and his involvement in the Jan. 6 insurrection.
In political futures markets, where investors can speculate on the political outcomes of candidates, Biden’s chances of remaining the Democratic party’s nominee decreased by 29% after the debate.
Citi analysts indicated on Friday that there might be a heightened interest in Trump Media & Technology based on news coverage following the debate.
Trump Media & Technology’s stock has been subject to significant fluctuations during Trump’s presidential campaign and has swung wildly following Trump’s conviction in his hush money trial.
A New York jury found Trump guilty of falsifying business records in a scheme to unlawfully impact the 2016 election through hush money payments to a porn actor with whom he allegedly had a sexual encounter.
The stock, traded under the ticker symbol “DJT,” has been highly volatile since its launch in late March, joining the ranks of meme stocks that experience rapid fluctuations from highs to lows as retail investors try to capitalize on momentum.
The stock frequently sees double-digit percentage movements in a single day, reaching nearly $80 in intraday trading on March 26. For comparison, the S&P 500 has experienced an almost 10% increase year to date.
In May, Trump Media reported a loss of over $300 million in the last quarter, as per its first earnings report as a publicly traded company.
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