Trump's Truth Social Plummets After Debate Performance

Shares of Truth Social-parent Trump Media & Technology (DJT) cratered early Wednesday following Tuesday's presidential debate between former President Donald Trump and Vice President Kamala Harris. This signals investor sentiment that Trump underperformed in the televised contest between the two candidates.

Investors Lose Confidence in Trump's Candidacy After Debate

Debate Outcome Reflects Investor Sentiment

The downward move by Trump stock DJT early Wednesday appears to support the sentiment that Vice President Harris outperformed the former president in the ABC-hosted presidential debate. Pundit consensus gave the edge to Harris, and the Trump-Harris debate Tuesday didn't cover tax policy, perhaps the issue of most importance to financial markets.The Donald Trump stock sank 15.5% to 15.76 during market action on Wednesday, hitting a new post-SPAC low for DJT stock. The Trump stock often trades as a sentiment indicator toward the former president and his current candidacy, and the decline suggests investors have lost confidence in his ability to mount a successful presidential campaign.

Trump's Shifting Social Media Presence Impacts Stock

The Donald Trump brand and the value of DJT stock are closely related, as Truth Social launched after then-Twitter shut down Trump's account following the Jan. 6, 2021, riot at the U.S. Capitol. The former president holds a 65% stake in Trump Media, worth several billion dollars based on the current stock price.However, the company reported in August another quarter of sub-$1 million revenue, indicating that Truth Social has yet to gain significant traction. Meanwhile, Trump also made his return to X, formerly Twitter, on Aug. 12 with a conversation with Elon Musk. DJT shares have tumbled 25% since then as Trump has repeatedly posted on the social media site since then, despite previously swearing he would not return to X and would remain on Truth Social.

Volatile Trading History of Trump Media Stock

Trump Media jumped more than 16% on March 26, its first day trading under the DJT ticker, hitting a high of 79.38 intraday. This followed Digital World Acquisition becoming Trump Media & Technology Group after successfully merging with Trump's tech and social-media platform on March 22. The special purpose acquisition company stock had rallied 35% on the day before the change to "DJT."However, DJT shares have dropped 68% since their conversion, and in 2024, DJT/DWAC has advanced only 6.5%. The stock hit a short-term high of 46.27 on July 15 following the Trump assassination attempt, but has since fallen 60%, signaling ongoing volatility and investor uncertainty surrounding the former president's political future.