Shares of Trump Media drop by nearly half in wake of guilty verdict

While former President Donald Trump has managed to gain in many areas in the wake of his conviction in the New York hush money case, there's one area that could be hurting him.

According to NBC News, in the wake of being found guilty on 34 felony counts of falsifying busines records, the stock price of Trump Media has taken a plunge.

The network reported that the share prices have dropped nearly 50% since the New York jury found the former president guilty.

Trump is the media company's majority owner.

Prior to the former president's conviction, the stock had outperformed at nearly all levels and briefly made headlines because of its skyrocketing price. On Friday, shares of Trump Media, called DJT on the Nasdaq, closed at $27.66.

On May 30, prices of the shares had soared to $51.84 per share. Later that day on May 30, Trump would be found guilty by the jury.

Trump media's stock plummets 30% over the past 5 days, closing at $26.75 per share Thursday.

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NBC News noted:

It is not clear if the conviction itself contributed to that decline — though the company in regulatory filings has acknowledged that, “An adverse outcome in one or more of the ongoing legal proceedings in which President Donald J. Trump is involved could negatively impact TMTG and its Truth Social platform.”

Some stock analysts believe the price of shares dipping to nearly half of what it was before the conviction is due to the company's registration of additional shares, which the SEC had to clear. Once cleared, the company was able to "resell certain shares and exercise stock warrants, threatening to dilute the stock price."

The company announced on Friday that it expects to receive "more than $69.4 million from the cash exercise of warrants on Thursday and Friday alone."

Analysts also noted that the shares took a beating last week just like the market did on multiple days.

The outlet added:

The stock fell more than 25% this week. Much of that drop came during volatile trading sessions Thursday, when shares tumbled nearly 15%, and on Tuesday, when shares closed nearly 10% down. The stock market was closed Wednesday for the Juneteenth holiday.

Even with the drop in price, the stock continues to be wildly popular with Trump's supporters.