In a dramatic turn of events, the stock of Trump Media & Technology Group (DJT) experienced a significant drop following the highly anticipated presidential debate between former President Donald Trump and current commander in chief Joe Biden. The parent company of Trump's social media platform, Truth Social, saw its shares plunge approximately 12% during late afternoon trading.

Experts analyzing the debate assert that Biden's performance, marked by a raspy voice and moments of confusion, heightened concerns about his ability to lead and potentially paved the way for Trump's victory in the upcoming election. At 81 years old, Biden's age has become a topic of concern among voters who question his capacity to effectively govern the country.

Isaac Boltansky, BTIG's director of policy research, reacted to the debate by stating, "Biden's bumbling and stumbling performance amplified concerns regarding his capacity to serve and set off a new round of panic in the Democratic Party. Trump won the debate and should be viewed as the clear frontrunner this morning, but his demeanor and falsehoods appeared to underscore the concerns some voters have with his fitness for office."

DJT shares have been on a volatile trajectory in recent months, experiencing fluctuations between highs and lows. The company faced a setback in May when Trump was found guilty on all 34 counts of falsifying business records intended to influence the 2016 presidential campaign, resulting in a 5% drop in share prices on the day following the conviction.

Trump Media, the parent company of Truth Social, made its debut on the Nasdaq after merging with special purpose acquisition company Digital World Acquisition Corp. Since its public launch towards the end of March, the stock has declined by approximately 44%.

Following the Capitol riots on January 6, 2021, major social media platforms like Facebook and Twitter, now known as Meta and X respectively, banned Trump from their platforms. In response, Trump founded Truth Social and exclusively posted on this platform throughout the trial. Although Trump has been reinstated on the major platforms, his focus remained on Truth Social.

In terms of financial performance, Trump Media reported sales of just over $4 million and net losses amounting to nearly $60 million for the full year ending December 31. The company anticipates continued losses due to challenges in achieving profitability. In the first quarter, losses of $327 million were tied mostly to expenses related to the SPAC deal.

Trump Media revealed that, as of April 29, there were over 621,000 different shareholders, primarily consisting of retail investors. Trump himself holds a majority stake of approximately 60% in DJT. With the stock currently trading at around $32 per share, Trump Media boasts a market capitalization of approximately $4.3 billion, valuing the former president's stake at around $2.6 billion. Immediately after the company's public debut, Trump's stake was worth slightly over $4.5 billion.

In late April, the stock reached a milestone that secured Trump an additional $1.2 billion in cash. However, stakeholders are subject to a six-month lockup period before they can sell or transfer shares.