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Trump Media stock hits new post-SPAC deal low

Published 19/08/2024, 15:58
© REUTERS
DJT
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Shares of Trump Media & Technology Group (DJT) fell 1.7% on Monday, marking a new low for the stock since its merger with a special purpose acquisition company (SPAC).

The decline is part of a broader downward trend, with the stock plummeting 53% over the past three months, although it is still up 28% this year.

The recent drop underscores ongoing volatility and investor concerns surrounding the company, which is led by former President Donald Trump and aims to compete in the media and social networking space.

The stock's poor performance follows a series of challenges, including a weak earnings report and former President Donald Trump returning to rival social media platform X.

Even so, last week it was revealed in filings that several well-known institutional investors made significant purchases in the media company ahead of its inclusion in two Russell indexes.

Trump Media & Technology Group attracted interest from asset management giants Vanguard, State Street, and BlackRock, the filings showed.

More concretely, Vanguard Group is said to have initiated a new position by acquiring nearly 2.9 million shares of Trump Media & Technology Corp, valued at approximately $94.3 million by the end of the quarter.

BlackRock also opened a new position with the purchase of nearly 2.2 million shares, while State Street bought just over 440,000 shares.

Nevertheless, the sharp decline in DJT's stock value raises questions about investor confidence in the company.

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