On Friday, shares of Trump Media & Technology Group, the parent company of Truth Social, experienced a rise after the opening bell in response to former US president Donald Trump’s conviction in his hush money trial. A New York jury found Trump guilty of falsifying business records in a scheme to illegally influence the 2016 election through hush money payments to a porn actor who claimed they had a sexual encounter.
Trading under the ticker symbol “DJT,” the stock has shown high volatility since its debut in late March and has become part of the group of meme stocks that experience frequent fluctuations as small investors aim to capitalize on upward momentum swings. Despite recent gains, the stock has tripled in value this year and has often seen double-digit percentage moves in a single day.
In its first earnings report as a publicly traded company earlier this month, Trump Media reported a loss of over USD 300 million in the last quarter. The loss included significant non-cash expenses related to its merger with Digital World Acquisition Corp., a special purpose acquisition company (SPAC). Trump now faces 34 counts of falsifying business records related to reimbursements paid to his former lawyer Michael Cohen for the hush money payment to porn actor Stormy Daniels.
Trump’s defense argues that the payments to Cohen were for legitimate legal services. However, legal proceedings surrounding Trump have implications for Trump Media & Technology Group and its Truth Social platform. Despite these challenges, investor interest remains high amidst ongoing legal saga involving the former president.
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