What Happened To Trump Media & Technology Group Stock Tuesday?

Trump Media & Technology Group Corp (NASDAQ: DJT) experienced a notable downturn on Tuesday, closing the day down over 11%. This decline came shortly after the inauguration of U.S. President Donald Trump. In this article, we detail the circumstances surrounding the movement of Trump Media shares and what investors should know.

Recent Performance of Trump Media Shares

On Tuesday, shares of Trump Media, the entity behind the social media platform Truth Social, encountered significant selling pressure. This stock has seen fluctuations in value corresponding with Trump's electoral prospects. Despite the recent drop, the stock has still enjoyed a rise of nearly 14% over the last three months, largely motivated by Trump's election victory in November. President Trump holds a considerable interest in the company, owning over 50% of Trump Media, which translates to approximately 114.5 million shares.

Market Trends and Profit-Taking

Tuesday's plunge may also indicate a trend of profit-taking among investors. There has been speculation that some of the capital previously held in Trump Media shares could have shifted towards Trump’s newly launched meme coin, Trump (TRUMP/USD), which saw an increase of around 18% within a 24-hour timeframe.

Upcoming Financial Results and Company Insights

Trump Media is set to announce its financial results for the fourth quarter in about two weeks. In the previous quarter, the company reported a net loss of $19.2 million alongside revenues of just $1.01 million, reflecting a decline of 6% year-over-year. Trump Media management has indicated that the price movements of its shares may not necessarily align with the company’s fundamental performance due to its close association with Trump. The organization commented, "TMTG's success depends in part on the popularity of our brand and the reputation of President Donald J. Trump. The value of TMTG's brand may diminish if the popularity of President Donald J. Trump were to suffer," in their third-quarter earnings report.

Current Stock Price Movement

As of Tuesday's close, Trump Media shares settled at $35.59 after a decline of 11.09%. Following the market's close, the stock was down an additional 0.45% in after-hours trading according to updates from Benzinga Pro.

Conclusion

Investors will need to keep a close eye on Trump Media as it prepares to release its financial results. The interplay between Trump's popularity, the company's performance, and stock price movements remains a crucial aspect for stakeholders in the upcoming period.

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