Trump Media Shares Dive After Trump Convictions
Shares of Trump Media Technology Group, the parent company of former President Donald Trump's social media platform Truth Social, plunged 65% late on Thursday after a New York jury convicted Trump on criminal tax fraud charges.
The jury found Trump guilty of all 17 counts of tax fraud, including falsifying business records, grand larceny, and criminal tax fraud. The charges stem from a scheme by Trump and his Trump Organization to avoid paying millions of dollars in taxes on his personal and business income.
Trump Media and Technology Group (TMTG) went public on Monday through a merger with a special purpose acquisition company (SPAC) called Digital World Acquisition Corp. (DWAC). The merger valued TMTG at $875 million.
However, shares of TMTG have been volatile since the merger. The stock opened at $40 per share on Monday and closed at $29 per share on Thursday. The stock then plunged 65% on Thursday after the New York jury convicted Trump.
The conviction is a major blow to TMTG, which is already facing challenges. The company has been criticized for its lack of moderation and for allowing hate speech and misinformation to spread on its platform. TMTG has also been sued by the New York Attorney General for allegedly misleading investors about the company's financial狀況.
Conclusion:
The conviction of Donald Trump on criminal tax fraud charges is a significant development that could have a major impact on TMTG. The company's shares have already taken a hit, and it is unclear how the conviction will affect TMTG's long-term prospects.
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