Wall Street Reacts to Trump’s Debate Performance: Stock Plummets

Wall Street Reacts to Trump’s Debate Performance

Wall Street appeared to deliver a harsh verdict on former President Donald J. Trump’s performance during the debate on Tuesday night, as evidenced by the early trading results on Wednesday for his social media enterprise. Shares of Trump Media & Technology Group, the parent company of Truth Social, opened significantly lower, dropping by more than 15 percent following the debate against Vice President Kamala Harris.

Since its market debut in March, Trump Media’s stock has been perceived as a barometer for Mr. Trump’s electoral viability ahead of the upcoming presidential election in November. Analysts and political commentators, including members from Mr. Trump’s own Republican Party, observed that Ms. Harris effectively put him on the defensive, prompting him to stray from his intended message during the debate.

If the early trading trends persist after the official market opening in New York, the shares of Trump Media could plummet to their lowest value since the company went public in March, following its merger with the cash-rich shell company, Digital World Acquisition Corp. Interestingly, on the day of the debate, shares of Trump Media had experienced a slight rally; however, the stock remains down approximately 76 percent from its post-merger high closing price.

This decline in Trump Media’s stock comes at a particularly inopportune moment for Mr. Trump, who holds about 57 percent of the company’s equity. A critical date is approaching on September 19, when a provision that currently prevents him and other major shareholders from selling their shares is set to expire.

As of the market close on Tuesday, Mr. Trump’s shares were valued at around $2 billion. Unfortunately, the continuous drop in Trump Media’s share price has diminished the paper value of his stake by approximately $4 billion in recent months. The early trading on Wednesday alone further reduced his stake’s value by an estimated $200 million.

Now, Mr. Trump faces a pivotal decision: Should he begin selling off some of his shares to realize gains now, or should he hold onto them, at least until after the election? If he opts to sell, the influx of new shares into the market could exacerbate the stock’s decline and potentially alienate his most devoted supporters—over 600,000 individual investors who currently hold shares in Trump Media.