"This stock has always represented a bet on Trump winning the 2024 election."

Sunrise, Sunset

In the immediate aftermath of Donald Trump's "hush money" guilty verdict, shares for his ailing social network, Truth Social, plummeted — only to jump back up and then fall once again Friday morning.

As the New York Times observes, this sort of volatility isn't exactly unusual for Truth Social owner Trump Media, but this instance is an apt example of how bad news often ends up rallying the former president's supporters — instead of scaring them away.

The size of the swing, too, seems to reflect the extenuating circumstances. In after-hours trading, the meme stock fell as much as 14 points, spiked just after the markets re-opened, and plummeted yet again.

For those who made the peculiar decision to invest in Truth Social, this wobbly value trajectory is par for the course.

"This stock has always represented a bet on Trump winning the 2024 election (and using Truth Social as his primary platform)," Matthew Kennedy, the senior IPO strategist at the Renaissance Capital firm, told CNN.

Collector's Investment

In an interview with Quartz last month, John Rekenthaler, the VP of research at the investor relations firm Morningstar, pointed out that those who bought stock in Trump Media likely weren't doing so to make money — but regardless of which way it swung, the trial's outcome likely wouldn't have made much of a difference for their bottom lines.

"I think anytime Donald Trump is in the news is oxygen for the stock, in any way," Rekenthaler remarked.

Notably, the Securities and Exchange Commission tried to warn investors ahead of time that the already-volatile stock could experience more tumult in the wake of his trial's conclusion.

"An adverse outcome in one or more of the ongoing legal could negatively impact [Truth Social]," the recent filing reads.

Beyond the stock flip-flopping, Trump's hush money verdict that found him guilty on all 34 counts related to falsifying records to cover up payments to adult film actress Stormy Daniels is also slated to affect his personal net worth, with estimates suggesting he stands to lose as much as $330 million in the company because he owns a majority of its shares.

At the end of the day, it remains to be seen what far-reaching outcomes this verdict will have — but as it stands, it's not looking very good on the financial front.

More on Trump: Elon Musk Distances Himself From Possible Trump Presidency


Share This Article