Shares of Trump Media & Technology Group (DJT) plummeted over 7% on November 5, 2024, as investors grew increasingly anxious about the outcome of the closely contested U.S. presidential election between Donald Trump and Kamala Harris. The decline reflects the market's concerns about the company's future prospects, which are closely tied to Trump's political fortunes.
The sharp drop in DJT's stock price came amid tightening polls that showed Harris gaining ground on Trump in several key battleground states. As the race became a virtual toss-up, investors appeared to price in the heightened uncertainty surrounding the election outcome and its potential impact on Truth Social, the social media platform owned by DJT and majority-controlled by Trump.
Moreover, reports indicated that short-sellers had significantly increased their bets against DJT stock in recent weeks, sensing a potential downside if Trump fails to secure a second term. This added selling pressure, combined with concerns about the company's ability to compete with mainstream platforms like Meta and X, formerly known as Twitter, weighed heavily on the stock.