DJT Stock on Pace for Worst Streak Since Digital World Acquisition Merger. What's Driving Shares Lower. -- Barrons.com

Dow Jones08-17

By Angela Palumbo

DJT stock was falling again on Friday, putting shares of the Truth Social parent on track for their worst streak since merging with the shell company.

DJT stock was down 1.8% in afternoon trading on Friday. Shares have now dropped for six consecutive days, or 11% in that period. If the stock closes in the red, it will mark its longest losing streak since Trump Media & Technology Group merged with Digital World Acquisition on March 26 of this year, according to Dow Jones Market Data.

Trump Media and the Trump presidential campaign did not immediately respond to requests for comment for this article.

The stock has also fallen for four consecutive weeks, its longest weekly losing streak since the merger.

The losing streak began four weeks after Trump Media filed a prospectus after the market close on July 15 announcing that it would resell close to 38 million shares of common stock. Shares fell 9.1% the following day and have yet to really bounce back.

DJT often acts differently than more traditional stocks. It has a market value of $4.6 billion, but had second-quarter revenue of only $837,000, according to its latest financial report for the period ending June 30. (That is less than three times the amount Trump made selling Bibles, according to his latest financial disclosures.)

The stock, though, seems to trade in line with people's feelings on who's more likely to win the 2024 presidential election. For example, shares surged 31% on the Monday after the attempted assassination of the former president as a Trump presidency seemed nearly inevitable. Since Biden dropped out, however, the polls have shown Vice President Kamal Harris surging in popularity, a move that has coincided with DJT's decline.

A Trump loss may just also be a loss for DJT investors.

Write to Angela Palumbo at angela.palumbo@dowjones.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.

 

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August 16, 2024 15:47 ET (19:47 GMT)

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