Shares of Trump Media, the company behind Truth Social, former President Donald Trump's social media platform, reached their lowest price since the company began trading on the Nasdaq nearly five months ago. The stock price dropped below $22.40 per share, marking a nearly 3% decline for the day.

Trump Media's stock initially surged in July after Trump, the majority shareholder, survived an assassination attempt at a campaign rally in Pennsylvania. The incident, along with Trump's formal nomination at the Republican National Convention, boosted investor momentum. However, in a significant turn of events, Democratic nominee Joe Biden dropped out of the election race and endorsed Vice President Kamala Harris as his replacement. This shift has affected betting markets' perceptions of the November election, with Harris now being favored over Trump.

The downward trajectory of Trump Media's stock over the past month has mirrored the changing dynamics of the election. Investors' support for the company had been tied to Trump's popularity and reputation. Some Trump supporters viewed the stock as a way to show their support for the former president or bet on his chances of winning a second term.

On August 9, Trump Media reported a loss of over $16 million for the fiscal quarter ending June 30, alongside revenue of just $837,000 during the same period. About half of the company's loss was attributed to ongoing legal expenses related to its merger with Digital World Acquisition Corp., a special purpose acquisition company.

Despite the meager revenue, Trump Media currently holds a market capitalization of nearly $4.5 billion, primarily driven by its stock price. However, the company's success is highly linked to Trump's popularity. Although Trump is bound by a licensing agreement to make "non-political" posts exclusively on Truth Social, he has the freedom to post political messages on other platforms.

Recently, Trump has been utilizing platforms like X (formerly known as Twitter) and TikTok to share political messages, reaching a wider audience compared to Truth Social's user base. Trump's engagement on these platforms has attracted attention, such as his interview with Tesla CEO Elon Musk on the social media site X.

It remains to be seen how the fluctuating stock price, political developments, and Trump's social media strategy will impact the future of Trump Media and Truth Social. With the November election approaching, the dynamics continue to evolve, and investors are closely monitoring the shifting landscape.