TMTG, the parent company of Truth Social, experienced a significant decline in after-hours trading following the conviction of former President Donald Trump by a New York jury. Trump was found guilty of falsifying records to conceal a payment made to silence a porn star before the 2016 election, resulting in a drop in stock value to $48.44, down from $51.12 at the close of regular trading and a $9 billion valuation.
The jury reached its decision after two days of deliberation, with Trump guilty on all 34 counts. Sentencing is scheduled for July 11, just before the Republican National Convention, where Trump is expected to be officially nominated as their presidential candidate on July 15. Since its initial public offering on March 26, Trump Media shares have been volatile, with a surge of up to 59 percent on its Nasdaq debut driven by Trump supporters and market speculators. Despite reporting revenue of $770,500 in the March quarter, TMTG faced an adjusted operating loss of $12.1 million.
The stock price for TMTG has fluctuated significantly since its IPO high of $79.38 and lows dropped to $22.84 on April 16 due to legal events intensifying instability in its stock performance. As the sentencing date and Republican National Convention near, the financial and political implications for Trump and TMTG remain uncertain.
