Current:Home > InvestNovaQuant Quantitative Think Tank Center:Trump Media stock drops in Friday trading after former president's guilty verdict -ProgressCapital
NovaQuant Quantitative Think Tank Center:Trump Media stock drops in Friday trading after former president's guilty verdict
SignalHub View
Date:2025-04-09 03:38:32
Shares of Trump Media & Technology Group fell more than 5% Friday afternoon,NovaQuant Quantitative Think Tank Center extending an after-hours slide from the prior evening when investors absorbed news of Donald Trump’s guilty verdict in his criminal hush money trial.
Trump was convicted of 34 counts of falsifying business records by a New York jury. Hours after the verdict, shares of Trump Media & Technology Group, the parent company of Truth Social, fell as much as 15%. (Trump owns 65% of the shares in the company.)
After hitting an after-hours low at $44 a share, the stock rose slightly during regular daytime trading on Friday, reaching $49.08 as of 2:26 p.m. ET.
The parent company of the Truth social app has been compared to GameStop and AMC. Like these typical meme stocks, Trump Media is overvalued compared with its peers − other social media companies − at least by conventional Wall Street standards.
"With meme stocks, they thrive on attention," Jay Ritter, a finance scholar at the University of Florida, told USA TODAY on Friday. "And the guilty-on-all-counts verdict was certainly not good attention, but sometimes any news is better than no news."
Ritter predicts the volatility will continue in the short term before the stock eventually collapses in the long term.
After the verdict:Trump campaign doubles previous one-day record fundraising haul after guilty verdict
Trump Media (DJT) stock prices
How the parent company of Truth Social went public
The social media company was founded by Andy Litinsky and Wes Moss in 2021 after Trump was booted from other social media platforms following the Jan. 6 attack on the U.S. Capitol.
Trump Media went public on the Nasdaq on March 26 this year through a merger with shell company Digital World Acquisition Corp., a special purpose acquisition company, or SPAC. The merger was announced in 2021. The new company's debut on the stock market was splashy, with Trump Media shares soaring, helped partly by – and to the delight of – his supporters.
But prices have fluctuated greatly since then. It has swung from a high of $79.38 per share at the close of March 26 to its lowest close of $22.84 on April 16.
Trump Media reports millions of dollars in losses
Regulatory filings show the company was operating at a loss in 2023, making about $4 million in revenue while losing more than $58 million. Accounting firm BF Borgers CPA PC said in a letter to Trump Media shareholders that the operating losses “raise substantial doubt about its ability to continue as a going concern.”
That firm has since been shut down on allegations of "massive fraud," according to an SEC release.
An unaudited filing shows that Trump Media reported a net loss of $327.6 million and brought in $770,500 in revenue in the first quarter of 2024.
Trump's legal cases come with mounting price tag
Trump himself owns more than 114 million shares of Trump Media, though he cannot cash in on them until the end of September.
At one point, the Trump Media shares were a potential source of funding to put toward hefty legal fees in several cases he faces as a defendant. Trump was ordered to pay a combined $537 million across two civil cases earlier this year, both of which he is appealing.
But in April, Trump posted a reduced bond of $175 million fronted by California billionaire Don Hankey to prevent his assets from being seized in the New York fraud case.
Trump has also been ordered to pay $10,000 in fines for gag order violations in his hush money criminal trial so far. His hush money conviction sentencing is scheduled for July 11.
Contributing: Bailey Schulz, Jessica Guynn and Jeanine Santucci, USA TODAY
veryGood! (6313)
Related
- Travis Hunter, the 2
- Southern Charm Reunion: See Olivia and Taylor's Vicious Showdown in Explosive Preview
- Trans youth sue over Louisiana's ban on gender-affirming health care
- Preserving our humanity in the age of robots
- Residents in Alaska capital clean up swamped homes after an ice dam burst and unleashed a flood
- Japan’s nuclear safety agency orders power plant operator to study the impact of Jan. 1 quake
- Joey Fatone, AJ McLean promise joint tour will show 'magic of *NSYNC, Backstreet Boys'
- Mahomes, Stafford, Flacco: Who are the best QBs in this playoff field? Ranking all 14
- RFK Jr. grilled again about moving to California while listing New York address on ballot petition
- UN to vote on a resolution demanding a halt to attacks on vessels in the Red Sea by Yemen’s rebels
Ranking
- 'Survivor' 47 finale, part one recap: 2 players were sent home. Who's left in the game?
- Selena Gomez and Timothée Chalamet deny rumors of their Golden Globes feud
- With threats, pressure and financial lures, China seen as aiming to influence Taiwan’s elections
- Japan’s nuclear safety agency orders power plant operator to study the impact of Jan. 1 quake
- The seven biggest college football quarterback competitions include Michigan, Ohio State
- Armed man fatally shot by police in Baltimore suburb, officials say
- Michigan finishes at No. 1, Georgia jumps to No. 3 in college football's final US LBM Coaches Poll
- California faculty at largest US university system could strike after school officials halt talks
Recommendation
US wholesale inflation accelerated in November in sign that some price pressures remain elevated
U.S. cut climate pollution in 2023, but not fast enough to limit global warming
Key moments in the arguments over Donald Trump’s immunity claims in his election interference case
SAG Awards 2024: The Nominations Are Finally Here
Opinion: Gianni Infantino, FIFA sell souls and 2034 World Cup for Saudi Arabia's billions
Michigan finishes at No. 1, Georgia jumps to No. 3 in college football's final US LBM Coaches Poll
John Mulaney and Olivia Munn Make Their Red Carpet Debut After 3 Years Together
Cesarean deliveries surge in Puerto Rico, reaching a record rate in the US territory, report says