Investors penalized Donald Trump’s social media business after his performance in the debate against Vice President Kamala Harris. Trump’s already falling Media & Technology Group further lost 17% in valuation and reached to its lowest level since its prime product, Truth Social Owner, went public. Moreover, bitcoin and Coinbase went further south; however, funds that owned solar and other clean energy shares rose sharply.
According to CNN, Wall Street has already made the impression that Donald Trump lost the debate on Tuesday night, and this massive fall in the shares of the Trump media company is an immediate reaction to the debate. They further mentioned that it is exactly the reverse of what happened on June 28 after President Biden’s disastrous performance in the CNN debate. The share price of Trump media initially spiked by 10% and later ended in red.
The CEO of Tuttle Capital Management, Matthew Tuttle, stated, “The perception in the market is she won the debate.” From “she,” Matthew meant vice president Kamala Harris. Matthew further mentioned, “I think if he loses, he has to sell and DJT goes to $1. If he wins, he doesn’t sell and DJT can make a run for it.”
The lock-up restriction that prevents Trump from selling his 114.75 million shares in Trump Media is set to expire later this month. Lifting the lock-up agreement will free Trump to sell some shares, but experts say it would be almost impossible for the former president to quickly unload most or all of his stake without tanking the share price.
