Trump Media (DJT) stock sinks as odds for Harris win rise after key Reuters debate
(Reuters) – Shares of Trump Media & Technology Group fell 17% in premarket trading on Wednesday after Democratic presidential candidate Kamala Harris extended her lead over Republican rival Donald Trump in the polls following the presidential debate.
Harris put Trump on the defensive with a series of attacks on his fitness for office, his support for abortion restrictions and his myriad legal problems, prompting a visibly angry Trump to deliver a series of false-filled responses.
After the debate, the price of a Trump victory fell 6 cents to 47 cents at online betting site PredictIt, while Harris' odds rose to 57 cents from 53 cents.
Harris' candidacy was boosted after pop star Taylor Swift told her 280 million followers on Instagram that she would vote for the Democrat.
“The US Presidential debate has achieved its goal by giving an important opportunity to one of the candidates in a very close race,” said Charu Chanana, global market strategist at Saxo.
“The debate (was) . . . further fueled by the endorsement of Taylor Swift, which may increase support among women and minority voters.
Trump is a major shareholder in the Trump Media & Technology Group (TMTG), which is the parent of the Truth Social app, which is popular among retailers and is often sensitive to the former president's chances of winning the 2024 US election.
Trump Media's valuation is equivalent to more than 900 times the company's 2023 loss-making revenue of $4.1 million, far exceeding the number of the largest companies with the most cash.
For example, Meta Platforms (NASDAQ: ), which earned $131.9 billion in goods and services by 2023, has a price-to-earnings ratio of 9.6, according to LSEG data.
Since it was listed in a reverse merger with a blank check company in March, TMTG's market value jumped to $9.2 billion in late May before falling to $3.7 billion as of late Tuesday.
About 320,000 shares of Trump Media stock changed hands in premarket trading, making it one of the Nasdaq's most traded stocks.
