What Happened To Trump Media & Technology Group Stock Tuesday?

Trump Media & Technology Group Corp (NASDAQ:DJT) shares closed Tuesday down more than 11% following U.S. President Donald Trump’s inauguration. Here’s what you need to know.

What To Know: Shares of Trump Media, the parent company of social media platform Truth Social, took a beating on Tuesday in the wake of Trump’s inauguration. The stock has moved up and down in recent months alongside Trump's chances of reelection.

Despite Tuesday’s sharp decline, Trump Media shares are still up close to 14% over the past three months, buoyed by Trump’s election win in November. Trump owns more than a 50% stake in Trump Media, or roughly 114.5 million shares.

It’s possible that some of the profit-taking in Trump Media shares on Tuesday could be the result of money flowing into Trump’s recently-launched meme coin Trump (CRYPTO: TRUMP), which was up approximately 18% over 24 hours at last check.

Check This Out: Meme Coin Supercycle? Dogecoin, Trump, Bonk Futures ETF Applications Filed

Trump Media is due to report financial results for the fourth quarter in about two weeks. In the third quarter, Trump Media reported a net loss of $19.2 million and revenue of just $1.01 million, which was down 6% year-over-year.

Trump Media management acknowledged last quarter that the price action in Trump Media shares may be detached from the company's fundamentals because of its ties to Trump.

"TMTG's success depends in part on the popularity of our brand and the reputation and popularity of President Donald J. Trump. The value of TMTG's brand may diminish if the popularity of President Donald J. Trump were to suffer," the company said in its third-quarter earnings release.

DJT Price Action: Trump Media shares closed Tuesday down 11.09% at $35.59. The stock was down another 0.45% in after-hours trading at the time of publication Tuesday, per Benzinga Pro.

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