Trump Media shares fall below $18 amid broad market sell-off – Global News (Trending Perfect)

Shares of Trump Media Inc., majority-owned by former President Donald Trump, fell Tuesday to their lowest level since parent company Truth Social began operations. General Trading In March after the merger.

DJT Trump Media shares fell to $17.89 a share at midday Tuesday, the previous low of $19.38 on Aug. 28. The stock has fallen about 77% from its high of $79.38 on March 26, after Trump Media merged with a special purpose public acquisition company.

DJT stock closed at $18.08 per share, down more than 7% in trading Wednesday.

Trump Media’s one-day slide was accompanied by a broader market decline Tuesday, particularly for technology companies. The Nasdaq ended the day down 3.26%, while the Dow Jones Industrial Average closed down 1.51% and the S&P 500 dropped 2.12%.

But market trends may only partly explain the decline in Trump Media's stock price.

This is because the company's shares typically trade more like meme stocks than traditional investments, and rise and fall in line with the political fortunes of the Republican presidential candidate.

The stock rose, for example, after Trump survived an assassination attempt in July, coinciding with increased voter support for his presidential campaign and several high-profile endorsements.

The latest drop in Trump Media shares comes just weeks before Trump, who owns about 59% of DJT’s outstanding shares, and other company executives were able to profit from the stock’s decline. Trump’s stake was worth more than $2 billion as of Tuesday.

Trump and other major shareholders are currently prohibited from selling their shares under a “lockdown agreement,” which is set to expire on Sept. 25. But that deadline could be moved up to Sept. 20 if the stock price stays above $12 per share for 20 trading days during the 30-day trading period that began last Friday.

Trump has not indicated any intention to sell, but speculation has swirled that his various campaign expenses and financial problems related to lawsuits could influence his decision.

If Trump wins the award, investor skepticism about the company could intensify, potentially triggering a broader selloff in shares.