Trump Media Shares Halted After Unexpected DJT Stock Price Plunge

The stock price of DJT, the parent company of Trump Media, took a sudden plunge, causing a halt in trading. This unexpected drop led to a trading halt.

Investors were left scrambling to understand the cause of the sudden decline. The DJT stock price had been steadily increasing in the days leading up to the plunge.

The halt in trading was likely a precautionary measure to prevent further volatility. This is a common practice when a stock's price is moving rapidly.

The exact reason for the DJT stock price plunge remains unclear, but it's likely to be a major talking point in the financial world.

Trump Media shares were halted multiple times on Tuesday morning due to volatility, with trading halted for five minutes at 9:36 a.m. ET and again at 9:42 a.m.

Shares of Trump Media were trading up around 14% at 9:36 a.m. ET, and up nearly 9% at 9:42 a.m. ET.

The company's stock was halted for a third time at 9:50 a.m. and again at 10:21 a.m., with the stock down more than 2% at the latter time.

Trading was halted for a fifth time at 10:31 a.m., with the stock still trading heavily.

The volatile session came after DJT stock had already surged more than 21% on Monday on extremely heavy trading volume.

Trump Media's stock had more than doubled its value in the span of three weeks, driven by polling and betting odds that suggest the race for the White House could go either way.

The stock's value had increased by 224% so far this month, with the company's market capitalization above $10 billion.

At the opening bell on Tuesday, Trump's stake of 114.75 million shares in the company was worth over $6 billion.

The company's gains have also coincided with political betting markets, such as Polymarket and Kalshi, tilting toward Trump over Harris in recent weeks.

Odds and gambling platforms do not use the same methodologies used by traditional political polling, and therefore are not substitutes for political polls.

The sudden plunge in Trump Media's stock on Tuesday was brief, with the stock initially bouncing back before plunging below $27.

The owner of social media platform Truth Social ended the day down 10%, and 20% below its high of the day.

There did not appear to be any new developments or announcements that would explain the sudden plunge, but Trump Media is a notoriously volatile stock.

The trading volume in shares of Trump Media was "enormous" on Tuesday, according to University of Florida professor Jay Ritter.

Ritter described Trump Media as a meme stock akin to GameStop and AMC, which are subject to sudden moves because they are being driven by momentum, not fundamentals.

Trading in Trump Media was halted five times on Tuesday, starting at 9:36 a.m. EDT and lasting for a total of about 30 minutes.

Trump Media shares eclipsed their 30-day average trading volume of 35.1 million shares by 10:15 a.m., with more than 82.5 million shares having been traded by 10:45 a.m.

Shares of Trump Media increased by as much as 14% after trading opened Tuesday, but later dropped to down more than 2%.

The stock later ricocheted and is now up more than 2% as of about 10:50 a.m. EDT.

Trump Media’s volatile trading on Tuesday follows rallies of 22% and 11% on Monday and Friday, respectively.

The highest level for the stock since June 5 was $47.68.

Trading in Trump Media was briefly halted earlier this month, after shares fell by more than 14% after previously trading up more than 13%.

The stock appears to be rallying amid a shift in Trump’s election odds, with recent jumps paralleling FiveThiryEight’s election model giving Trump a then-54% chance at defeating Vice President Kamala Harris.

Trump Media’s shares have been increasingly volatile since peaking earlier this year and plummeting to just below $12 last month.

The former president became eligible to sell shares in the firm last month, though he has said he would not do so.

Trump Media stock mysteriously plunged below $29 shortly after 2:40 p.m. ET on heavy trading volume.

Nasdaq paused trading for Trump Media at 2:42 p.m. ET for five minutes, a routine cooling-off period that exchanges are required to impose during times of heavy volatility.

The owner of social media platform Truth Social ended the day down 10%, and 20% below its high of the day.

The stock had more than doubled its value in the span of three weeks, a stunning move driven by polling and betting odds that suggest the race for the White House could go either way.

At Tuesday’s peak, Trump’s stake of 114.75 million shares in the company was worth $3.88 billion on paper.

By the end of the day, the value of that stake had dropped to $3.1 billion.