Catenaa, Wednesday, November 04, 2026- Trump Media stock plunged more than 16% on Wednesday after Democrats won a sweeping victory in the US midterm elections.
Trump Media & Technology Group, the parent company of Truth Social, saw heavy selling after Democrats won the election. Investors have frequently treated the company’s shares as an indicator of President Donald Trump’s political standing, according to Yahoo Finance.
The stock had already lost approximately 62% of its value year-to-date after Tuesday’s vote.
Technical indicators show traders had been bearish on the stock for months. Trump Media has been in a technical pattern traders call a “death cross” since March 2025 and has lost nearly 90% of its market cap since its 2024 cap.
A death cross happens when the average price of the last 200 days rises above that of the last 50 days, suggesting the asset is losing value too quickly.
The latest share-price decline has renewed investor concerns about Trump Media’s long-term prospects, particularly whether its social media business can sustain its value as Trump’s remaining presidential term progresses.
Trump Media’s plunge also raises broader questions about the president’s business relationships and what his critics describe as unethical financial entanglements, Yahoo Finance reported.
Yahoo Finance reported that earlier this year, the company announced it would launch a tool that would give Wall Street clients faster access to Trump’s Truth Social posts, where he often announces new policies and generates market-moving headlines.
“Entering the lame-duck phase of his presidency means Trump has less power to steer policy, in turn making access to his preferred platform less sought-after,” a Yahoo Finance report said.
Trump Media posted a Q2 2026 net loss of $238.1 million on revenue of $1.7 million, InvestorsHub reported.
According to InvestorsHub, that loss came largely from $190.4 million in non-cash unrealized losses on digital assets and equity securities, plus $25.6 million in legal expenses.
A bigger strategic shift is underway through Trump Media’s proposed all-stock merger with fusion energy company TAE Technologies.
The companies disclosed on November 3 that they filed a second amended registration statement with the SEC, and the deal still requires shareholder and regulatory approvals.
Ahead of any vote, Trump Media plans to release its Q3 2026 results after the market close on November 9 and host a call that evening.
