Erratic conduct by a presidential candidate has not instilled confidence in the company carrying his name.
The day after its shares saw a significant increase, Trump Media & Technology Group (DJT) experienced a sharp decline. On Tuesday, the company’s stock dropped by nearly 10% following reports indicating that its namesake was not gaining traction among voters. This decline was notably steeper than the 0.8% decrease observed in the S&P 500 index on the same day.
The company’s figurehead does not appear to be advancing in polls
With the election just 21 days away, Donald Trump’s potential return to the presidency is a crucial factor influencing Trump Media’s performance. An important poll conducted by Reuters/Ipsos indicated on Tuesday that Vice President Kamala Harris maintained a three-percentage-point lead over Trump, with 45% of respondents expressing support for her, compared to 42% for Trump.
A contributing factor to Trump’s stagnation might have been his unpredictable behavior at a South Dakota town hall event on Sunday. At the conclusion of the event, he unexpectedly ceased answering questions from the audience, opting instead to play and mostly dance to music selections for nearly an hour.
Trump Media stands to gain significant importance and influence in the social media sector if the former president is elected next month. Conversely, its core platform, Truth Social, would likely remain a relatively niche player in the high-profile sector should he lose.
The most volatile social media stock
Trump Media is recognized as a highly volatile and unpredictable stock, even under favorable conditions, and current circumstances may not be ideal for Trump. Investors might be better advised to consider larger, more popular social media companies that are generally less affected by political developments in the United States.
