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Trump Media shares retreat in volatile trading following conviction

·2 mins

A criminal conviction of a notable figure can have an impact on their associated companies. This is the case for Trump Media & Technology Group, the owner of Truth Social, following the historic conviction of former President Donald Trump. Trump Media’s stock has experienced significant volatility since the jury’s guilty verdict, with declines of up to 15% on Thursday evening. While the stock briefly recovered on Friday, it is currently down around 5%. Trump’s personal involvement in the company, both as chairman and leading shareholder, contributes to the market’s reaction. Despite Truth Social’s limited presence in the social media landscape and low revenue generation, Trump’s stake is valued at approximately $6 billion. The company’s first-quarter financials indicate minimal revenue, and it incurred a significant loss primarily due to a controversial merger that facilitated its initial public offering. Market observers have compared Trump Media’s stock performance to meme stocks, emphasizing its heightened volatility. The story is still developing.

A criminal conviction affecting a prominent individual is causing turmoil for Trump Media & Technology Group, the owner of Truth Social. Trump Media’s stock fluctuated significantly after former President Donald Trump’s conviction. Following the verdict, the Truth Social owner initially dropped by 15% but recovered slightly the next day before continuing to decline. Trump’s role as chairman, the popularity of Truth Social, and his large ownership stake make the stock particularly vulnerable. Trump Media’s financials reveal it has minimal revenue and suffered substantial losses, primarily due to a controversial merger. Despite its small presence in social media, Trump’s stake is valued at about $6 billion. Market analysts liken the stock’s volatility to meme stocks.