Trump Media & Technology Group has seen a steep decline in its shares, dropping nearly 20% following former President Donald Trump’s conviction in his hush money trial last month. This drop adds to the company’s already volatile stock movement since going public through a merger with Digital World Acquisition Corp in March. The company’s stock closed down over 5% at $42.09 after filing a notice about a reaudit of its finances completed by a new auditor, following the charges of “massive fraud” against the previous auditor BF Borgers by the SEC.
The parent company of Truth Social, Trump Media, has experienced an 18.8% drop in shares since May 30, the day Trump was convicted on 34 charges of falsifying business records. This marks the first criminal conviction of a former or sitting president in history. Additionally, Trump Media is down over 27% from its initial trading price on the Nasdaq in March, when it closed at $57.99. Trump himself holds a nearly 64% stake in Trump Media, which is estimated to be worth about $4.7 billion.
Forbes estimates Trump’s net worth to be at $6.7 billion after a 4% drop on Monday. Trump Media recently notified the SEC that they would miss a deadline for filing a financial performance report due to the new auditor, Semple, Marchal & Cooper, needing more time to review the company’s finances after the dismissal of BF Borgers in May. BF Borgers was let go after being charged with fraud by the SEC for not complying with accounting standards and making false claims. The firm settled with the SEC for $12 million.
Trump Media’s stock decline comes after Trump’s conviction in New York on 34 counts of falsifying business records, with a maximum sentence of 136 years in prison scheduled for his July 11 sentencing. Despite being a first-time offender, legal experts believe it is unlikely Trump will receive the maximum sentence, and some speculate he may not be sentenced to prison at all. This news follows a series of legal challenges for the former president, including impeachment trials and ongoing investigations.
The downturn in Trump Media’s shares reflects investor uncertainty following Trump’s legal troubles and the company’s auditing issues. The company’s stock has been on a rollercoaster since its merger in March, with various setbacks contributing to the decline. As Trump faces the prospect of legal consequences, the future of Trump Media & Technology Group remains unclear. Investors will be closely watching for updates on the company’s financial situation and any potential impacts on its operations and future growth.
