Truth The stock prices of social parent companies are falling to a new low after their public trading debut

Stock prices for the parent company of Donald Trump‘s social media platform Truth Social hit a new low on the first day of the Democratic National Convention.

Trump Media & Technology Group closed Monday at $22.24, down 3.56% from its previous close and the lowest closing price since the company went public in March. The last lowest closing price was $22.84 on April 16, the second day of closing The criminal trial against Trump in New York which a jury found him guilty of 34 cases of falsification of corporate documents.

Trump Media, trading under ticker DJT, has seen almost steadily declining stock prices since mid-July. The new low comes as the Trump campaign has struggled to gain a foothold against the Democrats’ new vice presidential candidate Kamala Harris. Earlier this month, the company reported more than $16 million in losses and less than $1 million in revenues in its second financial quarter.

Trump Media did not immediately respond to USA TODAY’s request for comment.

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Trump Media stock price

Trump Media compared to a meme stock due to volatility and overvaluation

Trump Media has long been compared to a meme stock, as experts say prices rise and fall largely due to the coordination and attention of retail investors.

The company was founded in 2021 after Trump launched other social media companies January 6 riots at the US Capitol. The company went public in March through a merger with shell company Digital World Acquisition Corp., a special purpose acquisition company, or SPAC. Despite a splashy debut, stock prices have swung wildly, often in coordination with the roller coaster of a news cycle for Trump this year.

Experts have also said the stock is overvalued by conventional Wall Street standards compared to other social media companies.

In May, Trump Media reported a net loss of $327.6 million in the first quarter of 2024 and generated $770,500 in revenue, according to a filing. In August, the company reported more than $16 million in losses and less than $1 million in revenues in its second financial quarter. Regulatory filings show the company operated at a loss in 2023, earning about $4 million in revenue while losing more than $58 million.

This article originally appeared on USA TODAY: Share prices of Donald Trump’s Truth Social companies are closing at a new low