Shares of Trump Media & Technology Group Corp. DJT, the holding company of the Truth Social platform, plunged in premarket trading.
The sharp decline came after Tuesday’s debate between Republican candidate Donald Trump, who owns TMTG, and Vice President Kamala Harris, his Democratic rival. A flash poll conducted by CNN among registered voters who watched the debate showed that 63% picked Harris as the winner as opposed to 37% who opined that Trump won.
The first and potentially the final debate before the Nov. 5 election was touted as a decisive moment in the current presidential cycle, sealing the fortunes of both candidates.
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Trump has a majority 64.9% stake in TMTG, thanks to the 114.7 million shares he owns in the company. A victory for Trump could bode well for TMTG and its Truth Social subsidiary, which is struggling with weak fundamentals. The platform hasn’t been able to compete effectively with legacy social media companies and as a result, has seen its daily active user base contract sharply. The former president predominantly uses the platform for airing his views and he recently started posting on X following his Spaces interview with its owner Elon Musk.
The stock could be in for more volatility in the upcoming sessions as poll results that factor in the debate performance begin to drop in.
TMTG went public on March 26 following the consummation of its long-delayed merger with the SPAC, Digital World Acquisition Corp, and the lockup period of shares held by insiders expires next week, potentially leading to additional supply in the market.
In premarket trading, TMTG shares slumped 12.45% to $16.31, according to Benzinga Pro data.
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