Just when you thought Trump Media was drifting into sweet meme-stock dreams, reality barged in, shook the bed, and left it soaked. On Thursday morning, shares of Trump Media & Technology Group (DJT) went full “how low can you go,” dropping nearly 14% before being halted five times for volatility. 

(Source: Fortune)

The stock ended its worst one-day tumble since going public in March, officially clocking in a 22.3% drop on Wednesday. (It seems that Trump’s social media company hit a pothole big enough to wake up his team at Mar-a-Lago.)

But first, how did we get here? DJT had been experiencing historic gains in a surge that made even Tesla look like it was standing still. From late September through last week, Trump Media shares quadrupled in value as speculators bought in on the idea of a potential Trump comeback to the White House. Yet this week, the “Trump bump” morphed into a rather aggressive dump, shaving off over $3 billion from the company’s market cap in the blink of an eye.

(Source: USA Today)

So, what gives? One theory is that this drop was more of a “sell the news” moment. For weeks, DJT stock had climbed in tandem with rising betting odds that Trump might retake the Oval Office. But with those expectations already priced in, it seems like traders decided it was time to cash out. 

(Source: Fox News)

And if you needed more proof that DJT is the gift that keeps on giving (or taking, depending on the day), Thursday morning saw the stock halted right at market open after Wednesday’s brutal 22% slide. By the time the dust settled, Trump’s stake in the company lost about $1.3 billion in value in 24 hours. That’s right—$1.3 billion in one day. (Ever lost a fiver and felt salty? Yeah, think of that, but with nine extra zeros.)

To be fair, Trump Media isn’t alone in the meme-stock casino. We’ve seen similar chaos with GameStop and AMC, which also rallied on social media hype before reality smacked them back down. But Trump Media takes it to another level because it’s not just a stock—it’s a proxy for the former president himself. You’re not just buying into a company; you’re essentially betting on Trump’s political future. And let’s just say, that’s a market as volatile as they come.

(Source: MarketWatch)

And just in case you’re eyeing a DJT short, good luck. The cost to borrow shares is so high it’s practically insane, making it virtually impossible to bet against the stock without shelling out big.

Investors seem to be realizing that Truth Social isn’t quite the next Facebook. With under a million monthly users in the U.S., Trump’s media empire isn’t exactly threatening Zuckerberg’s castle. For comparison, even Meta’s Threads (a baby in the social media world) has about 20 times the user base. So while DJT may have seen a meme-worthy rise, its fundamentals are, as one analyst put it, “a head-scratcher.” Trump Media posted just $1.6 million in revenue this year, while rival media companies are clocking in billions.

At this point, holding DJT might feel like being on a Six Flags coaster in the dark. But hey, for Trump supporters, DJT is more than a meme stock; it’s a rallying cry for a certain group of investors. And as we inch closer to Election Day, it’s safe to say that volatility is going nowhere fast.

For now, DJT is still up about 130% from its September lows, so the hype isn’t totally dead. But whether this is just another bump on the road or the beginning of the end remains to be seen. As one analyst put it, if Trump wins, “this stock could do anything.” If he loses? Well, let’s just say it could be the quickest trip from meme stock to “zero” we’ve seen in a while.

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Stock.News has positions in Tesla and Meta.