Trump Media closes up nearly 8%, continuing post-sell-off rally
A smartphone displays the logo of Donald Trump's Truth Social app on March 25, 2024.Anna Barclay | Getty Images
Shares of Trump Media & Technology Group closed up nearly 8% on Wednesday, adding to the stock's post-sell-off rally.
The stock initially sank more than 6% mid-morning but closed up 7.92% at $39.25 per share on Wednesday.
Trump Media, which trades under the ticker "DJT," plummeted nearly 50% in the three weeks following the felony conviction of former President Donald Trump, Trump Media's majority shareholder.
The sell-off continued last week after the Securities and Exchange Commission declared the company's registration of additional shares effective, which sent the stock tumbling in after-hours trading on June 18.
Shares of Trump Media closed at $26.75 last Thursday, its lowest level since April, but began rebounding on Friday. By Tuesday, the stock had surged more 36% from Thursday's close, and Wednesday's move brings its recent gains to more than 45%.
The stock is still down 23% from Trump's conviction on May 30.
Trump Media, the parent company of social media platform Truth Social, started publicly trading on March 26 after merging with a special purpose acquisition company. Its wild swings since then — like Wednesday's — have often come without a clear reason.
In its latest earnings report filed in May, the company disclosed a net loss of $327.6 million and total revenue of $770,500 for the first quarter of the year. Truth Social has struggled to maintain its user base, and the company recently warned investors that a change in usage from its most well-known user — Trump — could have a "a material adverse effect" on the platform.
The former president owns nearly 65% stake in Trump Media, but he cannot sell any of his 114,750,000 shares until a post-merger lock-up period ends in late September.
Trump Media's market capitalization stood at nearly $7 billion at Wednesday's close.