Trump Media shares experienced significant fluctuations in the stock market following the conviction of its majority shareholder, former President Trump.
Some shareholders of President Trump’s social media company responded to his historic conviction by expressing their intention to buy his stock.
One user on Truth Social, going by the username @NancysEyebrows, enthusiastically shared, “Let’s buy $DJT!!!”
The response to this clarion call is yet to be seen. This decision holds significant implications for the success of Trump Media & Technology Group, the company responsible for Truth Social. Moreover, it has the potential to impact the financial prospects of its majority shareholder, Donald Trump, especially considering his ongoing legal battles and the intensity of the current presidential campaign.
On Friday, the stock of Trump Media initially saw a 15% increase in its opening, but later surrendered those gains and experienced a 6% decline in the afternoon. This decline followed the initial drop in share prices during after-hours trading on Thursday, when a New York jury convicted Donald Trump of 34 counts of falsifying business records.
Shares of Trump Media (DJT) have experienced significant volatility since the company’s launch in late March. Surprisingly, the stock has outperformed the expectations of many professional investors. This unexpected success can be attributed to the large number of individual investors who have enthusiastically purchased shares in the company.
Die-hard Trump supporters are believed to be among many of these investors. Posts in a Truth Social group for Trump Media shareholders with over 11,000 members indicate that, in the hours following the verdict on Thursday, they have been encouraging each other to buy more shares and hold onto them.
In the “$DJT” group, @jzal expressed the idea that the most direct way to show support for Trump is by purchasing shares of DJT, as it would help increase their value.
The member also highlighted that every $1 increase in price results in $114 million in Trump’s pocket. They emphasized that while campaign donations are valuable, they do not have the same significant impact.
Despite Trump Media’s poor financial performance, many shareholders have chosen to invest in the company’s stock. In the first quarter of the year, the company recorded a substantial loss of over $300 million, with only $770,000 in revenue. Additionally, its active monthly user base is significantly smaller compared to that of X or Facebook.
Their purchases, however, have supported the shares of Trump Media, resulting in a significant increase in the former president’s wealth. As of Thursday’s closing trading, his stake was valued at approximately $5.4 billion.
For shareholders, it is expected to continue being an unpredictable journey. The trial of Trump, which revolved around allegations of falsifying business records to impact the 2016 presidential election, has been viewed as an initial measure of the dedication of Trump Media’s shareholders to the company.
The situation could potentially worsen for Trump. He still has to deal with sentencing and three other criminal cases at both state and federal levels. Additionally, the upcoming presidential race, which is anticipated to be fiercely contested, is likely to have a direct impact on the trading of Trump Media.
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