Jay Ritter
Cordell Eminent Scholar Jay Ritter

Why Does Trump Media Stock Keep Falling?

Shares of Trump Media & Technology Group have plunged since the company began trading in March, driven by a combination of operational challenges, legal woes and competition in the social media landscape.

The parent company of Truth Social, majority-owned by former President Donald Trump, saw its stock close down more than 10 percent on Friday at $32.75 per share, the day after Trump’s first presidential debate of 2024 against President Joe Biden. Earlier on Friday the shares had risen sharply, reflecting the volatility that’s been a hallmark of the stock since it began trading under the ticker symbol DJT on March 26. In that time, the price has fallen more than 40 percent.

Cordell Eminent Scholar Jay Ritter likened the company’s performance on the financial markets to that of “meme stocks,” such as AMC and GameStop, which took the internet by storm in 2021 after investors on social media platforms, in particular Reddit, orchestrated buying sprees.

Read more insights from Ritter in this story from Newsweek