Shares of Trump Media plummeted over 17% in premarket trading following the company’s announcement to issue millions of additional shares of stock. This significant drop coincided with former President Donald Trump’s appearance in court for the start of his criminal trial related to hush money charges, as he holds the majority stake in the company. The market’s response signified a lack of confidence in Trump Media amidst ongoing legal troubles facing its key shareholder.
Trump Media, known for creating the Truth Social app and trading under the stock ticker DJT on the Nasdaq, experienced a steep decline last week as well, dropping nearly 20%. The consecutive downturns in the company’s stock value highlight the uncertainty surrounding its future amid the legal proceedings involving Donald Trump. Investors are closely monitoring the situation, with the stock’s performance fluctuating in response to developments related to Trump’s criminal trial and its potential impact on the company’s operations and reputation. The market volatility and negative investor sentiment reflect the challenges that Trump Media faces in maintaining stability and growth amid the legal and public scrutiny surrounding its high-profile stakeholder.