The Trump Media and Technology Group saw a significant drop in its stock price, falling as much as 9% following the news of Donald Trump's conviction on 34 charges related to falsifying business records in a hush-money trial. This news sent shockwaves through the market, causing the stock to initially plummet by 15% in after-hours trading on Thursday. However, the stock managed to recover some of those losses by rising 7% in premarket trading on Friday, only to fall again during regular trading hours.
Despite the volatile trading, Trump Media Group's stock has since stabilized, currently trading down about 5% as of Friday morning. The company, which is the parent company of Truth Social, a social media platform founded in 2021, has become a meme-stock with a dedicated base of supporters aligned with the former President.
With a valuation of nearly $9 billion, Trump Media Group's underlying business is minimal, reporting revenue of just $770,500 in the first quarter and losses of $327.6 million. The company's future remains uncertain, especially with Trump facing a potential four-year prison sentence following his guilty verdict. Trump has vowed to fight the conviction, claiming it was a rigged trial by a corrupt judge.
Despite the legal troubles and market fluctuations, Trump Media Group continues to have a loyal following of politically aligned supporters. The company's stock remains a focal point for investors looking to capitalize on the volatility and uncertainty surrounding the former President's legal woes. As Trump prepares for his sentencing on July 11, the future of Trump Media Group hangs in the balance, with investors closely monitoring the developments.