Trump Media Stock Drops 20% Post Hush Money Conviction

Former President Donald Trump’s media venture, Trump Media & Technology Group, has seen its stock plummet by nearly 20% following Trump’s conviction in his hush money trial. The company’s shares have been on a rollercoaster since its merger with Digital World Acquisition Corp in March, dropping more than 5% to $42.09 after news of a reaudit of its finances by a new auditor, Semple, Marchal & Cooper, was announced. This followed the dismissal of its previous auditor, BF Borgers, who was charged with fraud by the SEC. The stock is now down over 27% from its initial trading price of $57.99 on the Nasdaq.

Trump, who owns nearly 64% of Trump Media, has seen his stake in the company drop in value to about $4.7 billion. Despite this, his estimated net worth still stands at $6.7 billion, though it experienced a 4% drop on Monday.

The SEC was notified last month that Trump Media would miss a deadline for filing its financial performance report due to the new auditor needing more time to review the company’s finances after the dismissal of BF Borgers. BF Borgers settled with the SEC for $12 million after being accused of not complying with accounting standards and making false claims.

Trump’s conviction on 34 counts of falsifying business records, the first time a former or sitting president has been criminally convicted, has further impacted Trump Media’s stock, which has dropped 18.8% since the conviction on May 30. Trump faces a maximum sentence of 136 years in prison ahead of his July 11 sentencing, although as a first-time offender, it is unlikely he will receive such a harsh punishment. Legal experts generally do not expect Trump to be sentenced to prison at all.