After a weekslong rally that saw shares of Trump Media & Technology Group (DJT) roughly triple in value, the stock took an 8% nosedive Tuesday afternoon.
Shares of the corporate behind former President Donald Trump’s right-wing social media platform Truth Social fell to $26.60 apiece after having been up roughly 10% that morning. Tuesday’s volatility led to the Nasdaq briefly halting trading.
The corporate’s stock has fluctuated wildly in value within the nearly seven months because it went public under the ticker DJT. Late last month, shares dropped as little as $12.15 each. Since Oct. 1, nevertheless, Trump Media shares are up 70%.
This see-sawing comes just weeks before the presidential election, which can see Trump face off against Democratic presidential candidate and Vice President Kamala Harris on the ballot box.
Trump is a majority shareholder of Trump Media, holding roughly 57% of the corporate’s stock — and he has said he has no plans to let go of his holdings. The stock’s recent rally has added some $2 billion to Trump’s net price.
Trump Media has been widely considered a “meme stock” or “affinity stock,” with shares trading largely on sentiment in regards to the former president by retail and individual investors, whatever the company’s actual operating results or prospects.
“It’s purchasing his brand,” John Rekenthaler, vp of research at Morningstar (MORN), previously told Quartz. He warned that the corporate’s stock could “go to zero” or near it if Trump loses the approaching election.
Trump Media has said in regulatory filings that its “success depends partly on the recognition of its brand and the status and recognition” of Trump and that “antagonistic reactions to publicity referring to [Trump], or the lack of his services, could adversely affect TMTG’s revenues and results of operations.”