The Trump Media and Technology Group (TMTG) stock price has fallen 48% since October 29, when it stood at $51. The stock is now back down to $26.
In recent weeks, the stock has fluctuated regularly amid the election furor surrounding its largest shareholder, President-elect Donald Trump. On two occasions, notably on election day, stock trading was halted because its price was too volatile.
Before the election, from mid-to-late October, TMTG shares surged after betting sites And polls favored Trump to win the election. That prediction, of course, turned out to be true, sending the stock shoot even more. The day after the election, TMTG opened up 31% from its previous close.
However, after the initial pre-election enthusiasm, the stock stabilized. Trading volumes in the stock fell from the flurry of activity that occurred once it became clear that Trump would, in fact, win the White House. On Election Day, 169 million shares of TMTG were bought and sold, while the next day, 176 million shares were traded.
Since then, stock trading has fallen to a fraction of that activity. As of Wednesday, just a week after Trump’s victory, only 21 million shares were traded.
Much of the trading just before the election was driven by momentum traders, who saw a rising stock and took advantage of its quick gains. In all likelihood, these traders moved on, with their interest in the stock only coinciding with Trump’s positive odds during the election cycle.
October’s massive rally resulted in a torrent of trading, with those buying low selling, while others wanted to buy a shooting star. October had the two weeks of trading with the highest volume since the company went public.
Despite the large number of investors trading the stock, which caused dramatic fluctuations in the stock price, Financial performance of TMTG remains unchanged. Since its inception, the company has struggled to generate significant revenue and has operated at a loss.
TMTG’s latest earnings report for the third quarter of 2024 showed that the company lost $363 million year to date. During that time, it only generated $2.6 million in net profit. The mismatch between TMTG’s trading results and its share price has led to accusations that it is a meme stock. Now that Trump is back in the White House, the company the future is somewhat uncertain.
The company’s main asset is the new social network Truth Social, which presents itself primarily as a conservative version of X. But TMTG plans to expand its business. She recently launched a streaming platform called Truth+and in an unorthodox move, TMTG built a proprietary version of its backend technological infrastructure to reduce its dependence on third-party technology providers. TMTG CEO Devin Nunes touted the completion of this project as the start of the company’s growth. “These actions do not mark the end of our expansion but simply the beginning,” Nunes said in an earnings release.