Trump Media shares experienced a sharp decline in extended trading on Thursday. 

The drop came on the heels of a New York jury finding former President Donald Trump guilty on all 34 felony counts of falsifying business records in his criminal hush money trial.

The stock, trading under the ticker symbol “DJT,” dropped 15% immediately after the verdict. 

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• Trump Media shares plunge up to 15% after guilty verdict in hush money trial.

• Donald Trump, owner of 65% of Trump Media shares, was found guilty on all 34 felony counts.

• Trump Media’s $9 billion market cap is heavily tied to Trump’s personal brand and follower base.

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Trump Media Shares Plummet Following Donald Trump’s Guilty Verdict on 34 Felony Counts

Although the shares recovered slightly as trading progressed, they remained approximately 9% down in the early evening. 

This substantial decline can be attributed to the former president’s significant stake in the company, as he holds 65% of Trump Media’s shares.

Trump Media, the parent company of the Truth Social app, recently completed a merger with the shell company Digital World Acquisition Corp. in late March. 

Following the merger, the stock experienced a surge in value, only to face a subsequent plunge.

Despite the company’s impressive market cap of around $9 billion, it is important to note that this valuation is largely based on Trump’s personal brand and his extensive follower base. 

The company’s financial performance in the first quarter of the year paints a less-than-promising picture, with Trump Media reporting a substantial net loss of $327.6 million and a meager revenue of less than $1 million.

However, the company also reported a substantial net loss of $327.6 million during the same period.

The guilty verdict against Donald Trump has undoubtedly had a profound impact on the market’s perception of Trump Media’s prospects. 

As investors grapple with the implications of the former president’s legal troubles, the company’s stock will likely face increased volatility in the coming days and weeks.

This development serves as a stark reminder of the inherent risks associated with investing in companies heavily reliant on the reputation and actions of a single individual. 

As the legal proceedings against Donald Trump unfold, the market will closely monitor the potential ramifications for Trump Media and its shareholders.

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