DJT stock falls on Trump conviction news

In an unprecedented event, Donald Trump has become the first president in US history to be convicted of a felony. Shares of his media company, Trump Media and Technology Group (DJT), are trading lower in reaction to this news.

Yahoo Finance's Rick Newman breaks down the details, providing insight into how this conviction could impact Trump's social media venture and his bid for reelection.

For more expert insight and the latest market action, click here to watch this full episode of Asking for a Trend.

This post was written by Angel Smith

Video transcript

What we've been noticing is that the sort of market proxy for Donald Trump is himself.

Trump Media and technology group ticker DJ T has been trading sharply lower in after hours.

Uh The after hours session, it still is higher than it was when the trial began, but still taking a hit here as it is again, sort of a proxy for Trump himself.

Rick.

Um You know, you've been covering politics for a long time.

We've never seen anything like this before, including by the way, having a publicly traded company that's a proxy for a presidential candidate.

Um You know, give us sort of your big picture thoughts here as we try to digest this DJ.

T the Trump media group is a binary bet on whether Trump is going to win the election or not.

Um uh Because if he doesn't win, um Trump's political career is basically over.

It's the end of the road for him.

And then what is the point of his social media company, which is way smaller than any other social media company out there, hardly any revenues and is losing money.

So you could expect that company almost to go bust if Trump doesn't win in terms of the broader picture here.

I mean, just here's the setup guys.

Uh Trump is going to be sentenced for 34 criminal convic convictions four days before the Republican convention at which he is likely to be nominated as their presidential candidate.

I mean, it is surreal.

Um But it has been surreal since Trump came down the elevator and announced his candidacy in 2015.

So Trump has brought us into territory.

We've never been before.

He did it again today and this might not be the last time.

So there could be more coming, just get ready for it.

You know, we do have a statement here, Rick from uh Biden Harris campaign.

They say in New York today we saw that no one is above the law.

They say the threat Trump poses to our democracy has never been greater.

That that is sort of central playbook, right?

They've been hammering that theme, Rick, right.

January 6th January 6th.

It hasn't broken through yet.

If you look at the polls, do you think today changes that I would, I want people to keep in mind that this is a, this was a jury trial.

Um You have to get 12 people to agree uh that the person either committed crimes or did not commit the crimes and we got 12 people to agree.

Uh Trump is gonna complain forever that this happened in super liberal New York.

But look the defense got to, uh, you know, have it say about who the jurors were, uh, and they did not take very long to find Donald Trump very guilty.

And this was not a straightforward case.

He is facing three other cases that are more serious than this would have more serious penalties if he's found guilty and in some cases are more clear cut.

So Trump faces a lot of trouble if this is a test of how he's likely to fare in a jury trial is bad news for Trump's future, Rick Newman.

Thank you so much for, uh, giving us your thoughts, your perspective, your reaction uh to this verdict.

Appreciate it you guys.

And just to recap once more, what has happened on this again historic day here, we have the first president ever having been convicted of a felony Donald Trump, former president of the United States convicted of 34 counts of falsifying business records in the first degree.

Now, under New York State law, the sentence for that could range from probation to four years in prison and sentencing has been set for July 11th.

The president has said he will be the former president has said he will be fighting uh this verdict, undoubtedly he will appeal.

But as it stands, that sentencing gonna be on July 11th and you know, we'll see what happens.

Big moment, big questions about the fallout for the campaign for sure.

Most definitely