Trump Media shares are in freefall

Trump Media & Technology Group shares hit another post-merger low on Tuesday, extending their decline for a second consecutive day of record lows.

The company behind former President Donald Trump’s social network, Truth Social, saw its shares fall as much as 4% on Tuesday to a new low of $21.33. In less than five months, shares of Trump Media have fallen about 63%, giving the company a market cap of $4.29 billion.

After years of delays, Trump Media debuted on Nasdaq under the ticker symbol DJT on March 26 following its completion. the merger with Digital World Acquisition Corp., a special purpose procurement company, or SPAC.

Since then, his stock has been especially volatilefluctuating wildly from day to day and adding – or subtracting – billions from the company’s market value. Trump Media stock was tagged as “meme stock”, that GameStop, AMCand Redditbecause of the way its shares trade largely on sentiment rather than the company’s actual operating results or prospects.

At the height of the hype, just after its debut, Trump Media had a market value of about $8 billion — almost double what it is today.

In recent months, Trump Media has fluctuated heavily based on its ties to the former president and Republican presidential candidate, who is a majority shareholder of the company. The stock rose and sank on convicted in his New York hush money trial and his debate performance against President Joe Biden in June as well as last month assassination attempt at a campaign rally in Pennsylvania.

But shares have been on a downward trend in the past few weeks for the company reported a net loss of $16.4 million and a 30% drop in revenue in the second quarter.

They continued to free fall on Monday as the Democratic National Convention kicked off in Chicago, with Vice President Kamala Harris set to formally accept the party’s presidential nomination on Thursday. Shares closed Monday at $22.24.