Shares of social media company Trump Media & Technology Group (DJT) are down 20% as uncertainty grows about the upcoming U.S. presidential election on November 5.
DJT stock was down as much as 22% in mid-afternoon trading on October 30, bringing to a screeching halt a blistering rally that had seen Trump Media stock rise more than 200% in the last month. The frenzy around Trump Media stock has been so intense that trading in the security has been halted on several occasions.
DJT stock had been rallying in the runup to the U.S. election where former president Donald Trump is vying for the White House against current vice-president Kamala Harris. Donald Trump owns nearly 57% of the social media company that runs the Truth Social app that is a clone of X, formerly Twitter, and popular with the former president’s supporters. The rally in DJT stock had dramatically increased Trump’s net worth, lifting the value of his stake in the company to about $4.5 billion.
Polls Tied Heading into the Election
While Trump’s supporters have been bidding up DJT stock in anticipation of him winning the November 5 election, polls suggest that the outcome may not be so certain. Polls released in recent days show Trump and Harris in a dead heat as American voters prepare to cast ballots.
The New York Times final national poll showed Harris and Trump deadlocked at 48% support among decided voters. Another recent poll by The Economist and YouGov showed Harris leading Trump 49% to 47% among likely voters. Many pundits expect an extremely close contest and say determining a final winner in the presidential election could take weeks or months.
Is DJT Stock a Buy?
No analysts follow Trump Media stock. Instead, we’ll look at the share price performance over the past three months, as indicated in the chart below. As one can see, DJT stock has risen 45% over the past three months. However, as mentioned, the share price has more than tripled during October before today’s pullback.
