DJT Stock Volatility to Continue as Trump Returns to Musk’s X

Trump Media & Technology Group experienced a decline in its shares during premarket trading after former President Donald Trump made a return to X, previously known as Twitter, to engage in a much-anticipated discussion with Elon Musk. This interaction marked Trump’s first post on his account since August 24, 2023.

During the premarket hours, shares of Trump Media & Technology Group Corp fell by approximately 2.4%. The stock closed down 5% on the previous trading day at $24.88. Last week, Trump Media reported a net loss of $16.4 million for the second quarter, with around half of that loss related to expenses from the company’s SPAC deal. The revenue for the quarter ending June 30 was just below $837,000, representing a 30% decline compared to the previous year.

An updated regulatory filing from April indicated that Trump Media generated sales of just over $4 million for the entirety of last year, with net losses approaching $60 million. The company also warned of ongoing financial struggles and anticipated continued losses.

Since its trading debut in late March, Trump Media’s stock has faced significant volatility, largely due to conflicting positions taken by Wall Street traders regarding the stock’s future. Since mid-May, the stock has seen a 50% reduction in value and has dropped over 40% following a brief spike after the attempted assassination of Trump on July 13, leading to billions in paper losses for Trump, the company’s largest shareholder.

In the conversation on X, Musk posed various questions that allowed Trump to reiterate his core messaging, particularly on immigration, where Trump asserted plans for “the largest deportation in the history of this country.” The exchange was characterized by mutual admiration, with Musk remarking on the pivotal moment for civilization and emphasizing that Trump was on the right path. Trump expressed gratitude for Musk’s support, highlighting its significance.

Musk also proposed the formation of a new presidential commission focused on government efficiency, suggesting that Trump appoint him to it, to which Trump responded positively. Their dialogue, initially delayed by technical issues, covered a wide range of topics including energy policy, climate change, nuclear threats, and immigration.

Since resuming his activity on the platform, Trump gained nearly 900,000 new followers by Monday night.