Share prices of parent company Truth Social fall to a new low after debuting in public trading

Share prices for the parent company of Donald Trump’s social media platform Truth Social hit a new low on the first day of the Democratic National Convention.

Trump Media & Technology Group closed Monday at $22.24, down 3.56% from its previous close and the lowest close since the company went public in March. The last lowest closing price was $22.84 on April 16, the second day of Trump’s criminal trial in New York, where a jury found him guilty of 34 counts of falsifying business records.

Trump Media, which trades under the ticker DJT, has seen its share price decline almost steadily since mid-July. The new low comes as Trump’s campaign struggled to find its footing against new Democratic vice presidential nominee Kamala Harris. Earlier this month, the company reported losses of more than $16 million and revenue of less than $1 million in its second financial quarter.

Trump Media did not immediately respond to USA TODAY’s request for comment.

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Trump Media stock price

Trump Media Compared to a Stock Meme for Volatility, Overvaluation

Trump Media has long been compared to a meme stock because experts say prices rise and fall largely due to the coordination and attention of retail investors.

The company was founded in 2021 after Trump was fired from other social media companies following the January 6 riot at the US Capitol. The company went public in March through a merger with parent company Digital World Acquisition Corp., a special purpose acquisition company, or SPAC. Despite a raucous debut, stock prices have wobbled wildly, often in coordination with the rollercoaster of a Trump news cycle this year.

Experts also said the stock is overvalued by conventional Wall Street standards compared to other social media companies.

In May, Trump Media reported a net loss of $327.6 million in the first quarter of 2024 on revenue of $770,500, according to a filing. In August, the company reported losses of more than $16 million and revenue of less than $1 million in its second financial quarter. Regulatory filings show the company operated at a loss in 2023, posting revenue of about $4 million while losing more than $58 million.

This article originally appeared on USA TODAY: Share prices of Donald Trump’s company Truth Social close at new low