What Happened To Trump Media & Technology Group Stock Tuesday?

Trump Media & Technology Group Corp (NASDAQ: DJT) saw its shares decline significantly on Tuesday, closing down over 11% following the inauguration of U.S. President Donald Trump. Here’s a closer look at the events surrounding this drop.

Stock Performance: The shares of Trump Media, the parent company of the social media platform Truth Social, experienced a notable downturn on Tuesday. This fluctuation in stock price can be attributed to various factors, including Trump's recent inauguration and the general sentiment surrounding his potential for reelection.

Despite the sharp decline seen on Tuesday, Trump Media shares have gained approximately 14% over the past three months. This increase can be linked to Trump’s election victory in November. Notably, Trump holds a significant ownership stake in the company, owning over 50%, which equates to around 114.5 million shares.

On the same day, some analysts suggested that there may have been profit-taking in Trump Media shares, as investors possibly shifted their funds into Trump’s newly launched meme coin, Trump TRUMP/USD. At the time, this digital asset was reported to have risen approximately 18% within a 24-hour period.

Upcoming Financial Reporting: Looking ahead, Trump Media is set to release its financial results for the fourth quarter in about two weeks. In its last report for the third quarter, the company reported a net loss of $19.2 million and revenue of just $1.01 million, which marked a 6% decrease from the previous year.

The management team at Trump Media has acknowledged that the stock's price movements might not align with the company's fundamentals, largely due to the company's close association with Trump. In their third-quarter earnings report, they stated, "TMTG's success depends in part on the popularity of our brand and the reputation and popularity of President Donald J. Trump. The value of TMTG's brand may diminish if the popularity of President Donald J. Trump were to suffer."

Final Note on Stock Activity: By the end of trading on Tuesday, Trump Media shares had closed down by 11.09%, landing at a price of $35.59. Additionally, in after-hours trading, the stock experienced a slight further decline of 0.45%, according to reports from market data analytics.

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