Trump Media & Technology Group shares plunged 24% on Wednesday to close at $4.49, their lowest level, a day after Democrats scored major victories in the midterm elections. The company is the parent of Truth Social, President Trump’s social media platform.
The stock has often been viewed on Wall Street as an indicator of Mr. Trump’s popularity. Its decline has accelerated in recent months as the company’s quarterly losses have grown.
After Wednesday’s sell-off, shares were down more than 90% from their closing price on March 26, 2024, their first day of trading. Mr. Trump’s stake, valued at about $6 billion shortly after the company’s market debut, is now worth just over $500 million.
The election results could also bring greater scrutiny from congressional Democrats, who may have the power to investigate business dealings involving Mr. Trump and his family. One potential focus is Trump Media’s plan to sell investment firms early access to Mr. Trump’s Truth Social posts so they can use the information to make fast trades.
Several Democrats criticized the proposal as giving some traders an unfair advantage. Other Democratic lawmakers introduced a bill that would prohibit Trump Media from selling the early access.
Sources: The New York Times Business.