Trump Media & Technology Group (NASDAQ: DJT) stock came under heavy selling pressure on Wednesday, November 4, falling roughly 7% in pre-market trading following a decisive Democrat victory in the early U.S. midterm elections.
The decline is, of course, unsurprising, as the election outcome represents a potential setback for Donald Trump’s political influence, with Democrats expected to assume control of both chambers of Congress in January 2027.
Indeed, Trump Media’s investment narrative is closely tied to the president’s public image and performance in the political arena. Accordingly, investors are worried that a failure to advance some of his policies through Congress could remove some of the tailwinds that have propped the company thus far.
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The latest decline also reversed much of the previous session’s 6% rally, which had, naturally, been driven by pre-election optimism. Right now, DJT stock is down 60% on the yearly chart, trading at $5.95 as opposed to $13.82 the same day last year.
Trump stocks and other assets decline as approval ratings drop
Investor sentiment has also been weighed down by concerns over Trump’s declining approval ratings. For instance, a Reuters poll published just one day earlier placed his approval rating at a record low of 31%.
What’s more, the company reported a net loss of $238.1 million in the second quarter of 2026, while revenue came in at just $1.7 million. As such, the figures highlighted the challenges of translating its political visibility into sustainable commercial performance.
At the same time, Trump’s crypto assets also showed a negative reaction to the election results. That is, while several digital assets posted gains on Wednesday, Trump-linked cryptocurrencies were among the worst performers in the top 100 by market capitalization.
The contrasting performance suggests that investors are reassessing assets whose valuations are closely associated with Trump’s political standing. Nevertheless, election-related price movements are not surefire proof that any of the assets in question are doomed.
Broader stock market resilient; What’s next for Trump Media?
Meanwhile, the broader U.S. equity market showed signs of resilience. Stock futures initially fell overnight amid concerns about a potential Democratic sweep, but the major indexes subsequently recovered and moved higher during pre-market trading. The S&P 500 is up 0.4% at press time.
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Another important development for Trump Media is its proposed merger with a private fusion energy company, TAE Technologies. Both parties filed a second amended S-4 registration statement with the Securities and Exchange Commission on November 3, but the transaction remains uncertain, awaiting regulatory and shareholder approvals.
In the short-term, the company’s third-quarter earnings, expected next week, could turn out to be an important benchmark. No matter the results, though, all attention will undoubtedly be on the company.
Featured image via Shutterstock
