By Elsa Ohlen
Trump Media and Technology stock fell in premarket trading Wednesday, widening Tuesday's losses.
The drop comes after Vice President Kamala Harris secured the Democratic Party nomination to run for the White House and a new poll showed her leading the race to become president.
The social media company is majority owned by Republican candidate Donald Trump and trades under the ticker DJT. Its stock was down 2.9% to $31.9 in premarket trading Wednesday while futures on the Nasdaq 100 were down about 1.2%.
A Reuters/Ipsos poll released Tuesday showed Harris narrowly beating Trump in a national presidential survey -- one of the first conducted since President Joe Biden ended his reelection campaign on Sunday.
Harris holds a two-point lead over former President Trump, 44% to 42%, according to the poll, which was conducted in the two days after Biden announced he was dropping out of the race. In the previous week's poll, Harris and Trump were tied at 44%.
DJT shares have had a choppy few weeks as investors appeared to respond to Trump's chance of victory, rather than fundamentals such as the company's earnings or future cash flows.
The stock rose sharply after the assassination attempt on Trump on July 13 from $30.9 to $40.6 per share but has since fallen steadily. However, it still trades at a premium to peers such as Facebook and Instagram parent Meta, Reddit, and Elon Musk's X. The stock is up 90% so far this year, despite having fallen 19% since its recent high.
Write to Elsa Ohlen at elsa.ohlen@barrons.com
This content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal.
(END) Dow Jones Newswires
July 24, 2024 08:27 ET (12:27 GMT)
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