Trump's DJT stock price tumbles following guilty verdict in hush-money case

By Lukas I. Alpert

The high-flying meme stock sinks in after-hours trading after Trump was found guilty on all 34 counts of falsifying business records

Thursday's guilty verdict put a dent in Donald Trump's social-media company's stock.

The stock price for Trump Media & Technology Corp. (DJT), operator of the former president's social-media company Truth Social, ended extended trading down 6% on Thursday after tumbling as much as 14% in the immediate aftermath of Trump being found guilty on all 34 counts of falsifying business records in his hush-money trial.

Also read: Even with guilty verdict, Trump unlikely to be put behind bars before November's election

The stock has endured a bumpy ride since going public in March following the completion of the company's merger with a special purpose acquisition company, Digital World Acquisitions Corp. The stock shot up over 30% in its first few days as a publicly traded company, but then fell as much as 50% in the weeks following.

Prior to and since the merger, Trump's media business has attracted a meme-stock level of attention, with a valuation that is completely unmoored from the company's fundamental performance.

Trump, who owns about 70% of the company's stock, saw his net worth nearly triple in the first few days of trading. Due to lock-up provisions contained in the merger agreement, Trump is unable to sell or borrow against his shares for six months after the date the deal closed. The shares initially attracted the attention of short sellers, which prompted the company to go on a noisy public offensive against such traders.

-Lukas I. Alpert

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05-31-24 0523ET

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