The recent conviction of former President Donald Trump in a hush money trial has sent shockwaves through the financial markets, particularly impacting his media company, Trump Media & Technology Group.
A New York jury found Trump guilty of falsifying business records in a scheme to illegally influence the 2016 election through hush money payments to a porn actor who claimed to have had a sexual encounter with him. This verdict has had immediate repercussions on the stock market, with shares of Trump Media falling 9% in after-hours trading on Thursday. However, they have since rebounded, climbing nearly 3% in early morning trading on Friday.
The stock, which trades under the ticker symbol DJT, has been extremely volatile since its debut in late March, experiencing significant fluctuations in value. Despite this volatility, the stock has tripled in value this year, reaching highs of nearly $80 in intraday trading.
Trump Media’s financial woes were further highlighted earlier this month when the company reported a loss of over $300 million in the last quarter. This loss was attributed to non-cash expenses related to its merger with Digital World Acquisition Corp, a special purpose acquisition company.
In addition to its financial struggles, Trump Media has also faced challenges with its auditors, firing an auditor this month that federal regulators charged with massive fraud. The company has cycled through multiple auditors in recent months, raising concerns about its financial reporting practices.
The charges against Trump stemmed from reimbursements paid to his former lawyer, Michael Cohen, for a hush money payment to porn actor Stormy Daniels. Trump was accused of misrepresenting these payments as legal expenses to conceal their true purpose. Despite his defense’s claims that the payments were for legitimate legal services, Trump was convicted on 34 counts of falsifying business records.
The implications of Trump’s conviction on his media company remain uncertain, as investors closely monitor the ongoing legal proceedings and their potential impact on Trump Media’s future.