Trump Media shares swing wildly and then tumble a day after former president was convicted

Trump Media shares swing wildly and then tumble a day after former president was convicted

Actions of Trump Media & Technology Group closed lower on Friday after seeing sharp swings during the day following the conviction of former President Donald Trump in his secret trial.

After the close of the American stock markets on Thursday, a New York jury declared Trump guilty of falsifying business records in a scheme to illegally influence the 2016 election by paying hush money to a porn actor who claimed the two had sex.

After gaining more than 2% at the opening of markets on Friday, the stock ended the day down 5.3%.

The stock, which trades under the symbol “DJT,” has been extraordinarily volatile since its debut in late March, joining the group of meme stocks that tend to ricochet from highs to lows as small-pocketed investors try to capture bullish momentum at just the right time.

The stock has tripled this year, frequently resulting in double-digit percentage moves either up or down in a single day. It peaked at nearly $80 in intraday trading on March 26. As a reminder, the S&P 500 is up almost 10% since the start of the year.

In a filing with the U.S. Securities & Exchange Commission before being made public, Trump Media warned investors about the potential pitfalls the former president faced and the negative effect it could have on the title.

“President Donald J. Trump is the subject of numerous legal proceedings, the scale and scope of which are unprecedented for a former President of the United States and current candidate for office. An adverse outcome in one or more ongoing legal proceedings in which President Donald J. Trump is involved could have a negative impact on TMTG and its Truth Social platform.

Earlier this month, Trump Media announced that it lost more than $300 million last time. quarteraccording to his first results report as listed company.

For the three months ended March 31, the company reported a loss of $327.6 million, which it said included $311 million in non-cash expenses related to its merger with a company called Digital World Acquisition Corp. DWAC was an example of this happening. known as a special purpose acquisition company, or SPAC, which can offer young companies faster and easier ways to get their shares traded publicly, but with much less scrutiny.

Trump Media & Technology this month fired an auditor that federal regulators recently accused of “massive fraud”. The media company fired BF Borgers as an independent accounting firm on May 3, delaying the filing of its quarterly earnings report.

Trump Media had already brought in at least two other auditors — one who resigned in July 2023 and another who was fired by its board in March, just as it rehired BF Borgers.

Trump was charged with 34 counts of falsifying business records at his company as part of an alleged scheme to hide potentially embarrassing stories about him during his campaign for the 2016 Republican presidential election.

The charge, a felony, stemmed from reimbursements made to Michael Cohen, then Trump’s lawyer after making a secret payment of $130,000 to porn actor Stormy Daniels to silence his claims about an extramarital sexual relationship with Trump in 2006. Trump was accused of misrepresenting Cohen’s reimbursements as legal fees to hide that they were linked to a secret payment.

Trump’s defense argued that Cohen’s payments were for legitimate legal services.

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