The share price of Trump media has been cut nearly in half within the roughly three weeks since a New York jury found the corporate's majority owner, former President Donald Trump, criminally guilty.
Shares of the corporate behind Truth Social, which trades on the Nasdaq Stock Market as DJT, ended Friday's trading session at $27.66 a share.
That's a 46% decline from Trump Media's price of $51.84 per share on the close on May 30, the day Trump was found guilty on 34 counts of falsifying business records.
Trump Media shares closed up greater than 3 percent on Friday, providing a respite from a weeks-long downward trend.
Trump Media & Technology Group Corp. share price
It's not clear whether the conviction itself contributed to that decline – although the corporate acknowledged in regulatory filings that “an unfavorable outcome in one or more of the ongoing litigation involving President Donald J. Trump could have a negative impact on TMTG and its Truth Social platform.”
Analysts attribute the stock's downward trend to the registration of additional shares by Trump Media, which was declared effective by the U.S. Securities and Exchange Commission (SEC) after the stock market closed on Tuesday.
The SEC's approval allows initial investors in the corporate to resell certain shares and exercise warrants, which could threaten to dilute the share price.
The company has indicated that it could raise as much as $247 million if all of the warrants are redeemed for money. Still, Trump Media shares fell as much as 17 percent in after-hours trading on Tuesday.
In a Press release On Friday afternoon, the corporate announced that it expects to receive greater than $69.4 million in money proceeds from the exercise of warrants on Thursday and Friday alone.
The stock fell greater than 25 percent this week. Most of the decline occurred during volatile trading sessions on Thursday, when shares plunged nearly 15 percent, and on Tuesday, when shares closed down nearly 10 percent. The stock market was closed on Wednesday for the Juneteenth holiday.
Trump Media's share price has fluctuated wildly since its IPO in late March, as retail investors and short sellers have bought and sold the corporate linked to the controversial likely Republican presidential nominee.
In April, the stock was considered the most costly short-sold stock within the US.
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