Death spiral? Truth Social's post-conviction slide picks up speed
Shares of Donald Trump's social media company dropped more than 10 percent Thursday in premarket trading three weeks after his conviction on 34 felony counts.
Trump Media shares have slumped since a jury found the former president guilty, and the value of Trump's stake in the company has plummeted from more than $5.6 billion to $3.2 billion since then, reported CNBC.
Shares in the parent company for the Truth Social app, which trades on the Nasdaq as DJT, hovered around $27.50 before the market opened, which is about 36 percent below their $49 price at the start of the month.
The stock fell nearly 10 percent Tuesday on more than double the average trading value, and the stock plunged 17 percent in post-market trading after Trump Media revealed the Securities and Exchange Commission had declared its registration statement effective.
That declaration allows early investors to exercise warrants they hold in the tech company and allows stockholders to publicly resell securities covered by the registration statement.
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