The share price of Trump Media plunged more than 13% on Wednesday, following a widely criticized debate performance by majority shareholder Donald Trump against Vice President Kamala Harris.
The company’s stock hit its lowest intraday level since Truth Social's parent company began trading publicly as DJT on the Nasdaq in late March.
Investing in Trump Media is often seen as a way to bet on Trump's political fortunes, with the former president and current Republican nominee closely tied to the company’s success.
Trump Media has acknowledged that its business partially relies on Trump's popularity, with analysts suggesting that the company's value will rise or fall based on his electoral prospects.
Wednesday’s stock drop may indicate dissatisfaction among some Trump supporters after his debate performance in Philadelphia.
Both liberal and conservative commentators agreed that Harris appeared more prepared, articulate, and composed, while Trump often became sidetracked by her jabs.
In a show of confidence, Harris' team immediately challenged Trump to another debate after the event. Trump, however, seemed hesitant.
In a Truth Social post on Wednesday, he reiterated his claim that Harris wanted another debate only because she was "badly beaten." He added, "Why would I do a rematch?"
Trump Media had surged by as much as 10% during trading on Tuesday, possibly reflecting optimism about Trump’s debate performance.
The gains provided temporary relief from a weeks-long decline that saw the stock lose up to 75% of its value from its intraday high in late March, following the company’s merger with a blank-check firm.
The slump coincided with President Joe Biden dropping out of the race and endorsing Harris as his replacement at the top of the Democratic ticket, as well as the approach of a key date when Trump and other insiders can begin selling their shares.
Trump owns nearly 57% of the company’s stock, which was valued at about $1.8 billion as of Wednesday morning. It remains unclear whether Trump intends to sell off part of his stake once the lock-up agreement lifts on September 19.
