On Tuesday, trading of Trump Media & Technology Group's stock, identified by the ticker DJT, was temporarily suspended on Wall Street after a sudden drop in its value.
The suspension occurred at 2:42 p.m. Eastern Time and lasted about five minutes, according to reports from the New York Stock Exchange. This pause was triggered by a mechanism designed to respond to unusual fluctuations in stock prices.
Trading Halted for Trump Media Stock
Earlier that day, DJT shares had been performing well, reaching an intraday high of $33.85 per share, marking a significant 13% increase. However, the stock's fortunes changed dramatically in the afternoon, prompting the suspension.
When trading resumed, the stock price of Trump Media continued to decline, eventually closing at $27.06, down $2.89, or 9.6% for the day. This downturn came as a surprise, negating some gains that had buoyed Trump Media's stock since its low point on September 24, said CBS News.
Investors view DJT shares as a reflection of Donald Trump's prospects in the upcoming presidential election on November 5, according to Reuters. The stock tends to rise when Trump's chances appear to improve. Recently, prediction markets shifted support toward Trump, reversing earlier predictions that favored Vice President Kamala Harris.
Despite stable polling numbers, Trump's business ventures faced challenges on the same day. World Liberty Financial, a cryptocurrency platform launched by the Trump family, experienced significant outages that limited sales.
This situation raised concerns among investors about the impact on DJT's stock price. Most shareholders of Trump Media are small investors who align with Trump rather than focusing on traditional financial returns or dividends.
Investors expressed their frustrations on Truth Social regarding the halt in trading and the resulting price drop. Many pointed fingers at short sellers, a common target of blame during stock price fluctuations.
One investor noted, "We, the long-term holders of DJT, see right through what transpired today. Shorts were rapidly losing control, prompting them to call in their chips at the SEC to halt trading."
Since its market debut through a merger with a blank-check company, Trump Media has attracted significant attention as a high-risk investment tied to Trump's political aspirations.
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DJT Stock Sees Volatility Amid Political Developments
The stock had previously surged by 18% on Monday, following news of Harris's upcoming interview with Fox News. The overall trend in DJT's stock price has seen an increase of approximately 120% in recent weeks after hitting a record low on September 24.
In the June quarter, Trump Media reported revenue of $837,000 while facing significant cash burn challenges. Experts note that the current stock market valuation of $5.4 billion appears disconnected from the company's actual operations.
As of now, Trump's 57% stake in Trump Media is valued at around $3.1 billion. As the political landscape evolves leading up to the election, trends in betting platforms indicate a slight improvement in Trump's chances of defeating Harris.
According to Oddschecker.com, Trump has an estimated 56% chance of winning, compared to Harris's 44%. Additionally, contracts for a Trump victory on the PredictIt platform are trading at 54 cents, while those for Harris are priced at 50 cents.
