Trump Media's stock price drops, reversing Election Day gains.
On Thursday, the shares of President-elect Donald Trump's media company dropped in premarket trading, reversing the gains made in the previous session due to his election victory.
The stock fell nearly 14% in the premarket after the Republican was elected the 47th president of the United States and is set to return to the White House for another four years.
In recent months, Trump Media, the operator of Truth Social, was perceived as a reflection of Trump's election prospects. The stock experienced a significant increase of up to 60% on Wednesday as it was predicted that Trump would defeat Vice President Kamala Harris. However, the gains were later reduced during the regular trading session.
A media company, which is mostly owned by Trump, went public in March through a blank-check merger and is now traded under the ticker DJT, which stands for Trump's initials.
Since its market debut, the trading in the name has been particularly volatile. Despite the company's poor fundamentals, investors have largely ignored them. On Tuesday, Trump Media released a surprise earnings statement that showed the company lost $19.2 million in the third quarter.
The stock market has experienced a 105% increase in shares this year, and investors may be considering taking profits after the strong performance in 2024.
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