Trump Media & Technology Group stock (DJT) sank double digits in premarket trading on Thursday, reversing the gains it enjoyed on Wednesday as Donald Trump clinched victory over Kamala Harris within the presidential election.
Shares in the corporate — the house of Trump’s social media platform, Truth Social — have been on a wild ride over the past week, with the up-and-down moves mostly tied to Trump’s probabilities of reclaiming the White House.
The stock is down about 10% over the past five days, although shares have rallied nearly 120% previously month.
Strategists have categorized the stock as a binary bet on the election. Matthew Tuttle, CEO of investment fund Tuttle Capital Management, recently told Yahoo Finance’s Catalysts that the trajectory of shares has hinged on “a buy the rumor, sell the very fact” trading strategy.
“I’d imagine that the day after him winning, you’d see this come down,” he predicted on the time.
Interactive Brokers’ chief strategist Steve Sosnick said DJT has taken on a meme-stock “lifetime of its own.”
“It was volatile on the best way up, and when a stock is that volatile in a single direction, it has a bent to be that volatile in the opposite direction,” he said on a call with Yahoo Finance last week.
In September, shares in Trump Media traded at their lowest level because the company’s debut following the expiration of its highly publicized lockup period. The stock eventually bounced back from its lows as each domestic and overseas betting markets began to shift in favor of a Trump victory.
Trump founded Truth Social after he was kicked off major social media apps like Facebook (META) and Twitter, now X, following the Jan. 6, 2021, Capitol riots. Trump has since been reinstated on those platforms. He officially returned to posting on X in mid-August after a couple of yr’s hiatus.
As Truth Social attempts to tackle social media incumbents, the basics of the corporate have long been in query.
On Tuesday, DJT dropped third quarter results after the market close that exposed a net lack of $19.25 million for the quarter ending Sept. 30. This was narrower than the $26.03 million the corporate reported within the year-ago period.
DJT also reported revenue of $1.01 million, a slight year-over-year drop in comparison with the $1.07 million it reported within the third quarter of 2023. Over the past nine months ending Sept. 30, revenue has fallen 23% from the prior-year period.
Last month, the corporate revealed that its COO had stepped down in September.
Trump maintains a roughly 60% interest in DJT. At Wednesday’s closing price of around $36 a share, Trump Media boasted a market cap of about $7.2 billion, giving the previous president a stake value around $4.3 billion.