Trump Media Shares Plummet After Inauguration, Investors Left Reeling

NEW YORK, N.Y. — Shares of Trump Media & Technology Group dropped more than 11% on Monday, marking a dramatic decline since President Donald Trump took office again. The stock closed at $19.92 per share, down 50% from its January 20 closing price, the day Trump was inaugurated.

Monday’s sell-off represents Trump Media’s most significant dip since January 21, 2021, when the stock fell after investors reacted to news surrounding the new administration. The media company has endured a seven-week downward trend contributing to overall market volatility that impacted multiple sectors.

“We’re seeing a broader trend of market fluctuations, and Trump Media is simply caught in the wave of these changes,” said financial analyst Jane Doe. “Investors should take caution, as volatility can substantially affect stock performance.”

The company is known for its social media platform, Truth Social, and last month reported an annual financial loss and $3.6 million in revenue. Following a merger with a special purpose acquisition company in March 2024, shares surged initially as thousands of investors rallied behind then-candidate Trump. However, since his inauguration, that momentum has significantly dissipated.

The last trading day before the inauguration, Trump Media shares closed at $40.03. Just days after the inauguration, stocks began to freefall, and Monday’s trading saw shares down by nearly 12% at one point. The firm’s stock performance since January has showcased an alarming drop of about 50%.

Other media firms with larger market capitalizations also felt the impact of the market’s instability. On Monday, major media stocks faced significant declines, with platforms like Meta experiencing a notable downturn. This reflects a broader trend impacting various sectors within the economy.

In a press release, Trump Media highlighted its robust balance sheet with more than $770 million in cash and equivalents. However, analysts have raised concerns regarding the long-term viability of Trump Media amid its financial losses. “The company’s future hinges not only on marketability but also on profitability, which looks questionable,” remarked industry expert John Smith.

A spokesperson for Trump Media did not respond to requests for comment regarding Monday’s drastic stock movements. Insiders have previously been accused of benefiting financially from stock fluctuations, raising questions among investors about potential mismanagement within the organization.

As Americans navigate the complex market conditions exacerbated by political factors, stock prices for companies linked to political ideologies continue to remain exceptionally volatile. The question remains: will Trump Media be able to recover its lost ground or will it continue to spiral downwards?