The stock of Trump Media & Technology Group (DJT) fell 15% on news that former President Donald Trump has been found guilty on 34 felony counts related to falsifying business documents in a criminal hush money case.
The stock, which trades under Trump’s initials “DJT,” has recovered slightly but remains down about 5% in premarket trading today (May 31).
The former president, who now faces the prospect of jail time, owns 65% of Trump Media, which runs the Truth Social platform that is similar to X, formerly Twitter.
Trump Media went public in March of this year through a special purpose acquisition company (SPAC) deal. The stock initially surged but, prior to today, had fallen 23% since early April.
While Truth Social is popular with Trump’s followers, the company behind the social media platform has run into financial problems.
Trump Media reported a net loss for this year’s first quarter of $327.6 million U.S. on less than $1 million U.S. in revenue.
Donald Trump is scheduled to be sentenced by a judge on July 11 after being found guilty on all 34 felony counts against him in relation to hush money he paid to a former porn star to buy her silence during the 2016 presidential election.
Trump is the first former president of the United States to be convicted on felony charges and he faces a range of sentencing possibilities, including prison time, house arrest, and/or probation.
The former president is widely expected to appeal his conviction, which could delay his sentencing beyond July.
