'Keep falling': Analysis finds Truth Social stock hit new low amid DNC 'Trump bashing'
Truth Social stock prices hit a record low Tuesday amid a days-long dive that financial analysts say could foretell the doom of former President Donald Trump's reelection campaign, according to a new report.
Trump Media, the publicly traded company majority-owned by Donald Trump, saw prices hit $21.42 Tuesday as the Democratic National Convention "Trump bashing" gained momentum in Chicago, the financial news magazine Barron's reported Wednesday.
"The stock tends to trade based on the perceived chances of a second Trump administration," Barron's reported. "Wall Street analysts are seemingly staying clear from the company and no analysts are covering the stock."
Trump Media did not respond to a Barron’s request for comment.
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Trump Media has lost 63 percent of its value since it merged with a shell company and went public on March 26, according to the Barron's analysis of Dow Jones Market Data.
Tuesday marked the eighth day in a row that Trump Media stock fell, according to the report.
That the company's core asset is Truth Social, the platform where subscribers gain direct access to the former president and Republican nominee, suggests a correlation between falling stock prices and the optimism his campaign is currently inspiring, argues Barron's.
"Based on the assumption that the DJT stock is a proxy bet on who will win the presidential election, if Kamala Harris beats Trump on Nov. 5, that could send the stock crashing," Barron's reports. "Conversely, if Trump wins a second term in office, shares are likely to spike."
Barron's suggested Truth Social failed to meet the former president's hopes with low user count and revenue, noting Trump only has 7.57 million Truth Social followers but 90 million X followers.
Trump Media reported revenue of only $837,000 in the second quarter of 2024, Barron's reported. The analysis concludes Trump Media stock "could keep falling."
"Even if Trump wins," Barron's concludes, "there’s little, if anything, that looks likely to be a catalyst driving shares higher again."