Shares of Trump Media & Technology Group, the owner of social networking site Truth Social, slumped Thursday after former President Donald Trump was convicted in his hush money trial.
A New York jury found Trump guilty of falsifying business records in a scheme to illegally influence the 2016 election through hush money payments to a porn actor who said the two had sex.
Trump Medias stock was down about 9% in after-hours trading Thursday as news of the verdict emerged.
The stock, which trades under the ticket symbol DJT, has been extraordinarily volatile since its debut in late March, joining the group of meme stocks that are prone to ricochet from highs to lows as small-pocketed investors attempt to catch an upward momentum swing at the right time.
The stock has tripled this year, in the process frequently making double-digit percentage moves either higher or lower on a single day.
It peaked at nearly $80 in intraday trading on March 26.
For context, the S&P 500 is up almost 10% year to date.
Earlier this month, Trump Media reported that it lost more than $300 million last quarter, according to its first earnings report as a publicly traded company.
For the three-month period that ended March 31, the company posted a loss of $327.6 million, which it said included $311 million in non-cash expenses related to its merger with a company called Digital World Acquisition Corp.
DWAC was an example of whats known as a special purpose acquisition company, or SPAC, which can give young companies quicker and easier routes to getting their shares trading publicly, but with much less scrutiny.
Trump Media & Technology fired an auditor this month that federal regulators recentlycharged with massive fraud.
The media company dismissed BF Borgers as its independent public accounting firm on May 3, delaying the filing of its quarterly earnings report.
Trump Media had previously cycled through at least two other auditors one that resigned in July 2023, and another that was terminated by its board in March, just as it was rehiring BF Borgers.
Trump was charged with 34 counts of falsifying business records at his company in connection with an alleged scheme to hide potentially embarrassing stories about him during his 2016 Republican presidential election campaign.
The charge, a felony, arose from reimbursements paid tothen-Trump lawyer Michael Cohenafter he made a $130,000 hush money payment toporn actor Stormy Danielsto silence her claims of an extramarital sexual encounter with Trump in 2006.
Trump was accused of misrepresenting Cohens reimbursements as legal expenses to hide that they were tied to a hush money payment.
Trumps defense contended that the Cohen payments were for legitimate legal services.
Hungary has been given a one-year exemption from US sanctions on using Russian energy, a White House official has said, after its Prime Minister Viktor Orban met with Donald Trump in the White House.
Mr Orban succeeded in convincing the US president to allow Hungary to continue importing Russian oil and gas without being subject to the sanctions Mr Trump‘s administration had placed on Russian fossil fuels.
Hungary has been under heavy pressure from the European Union to end its reliance on Russian energy.
The EU has mostly heavily cut or ceased its imports of Russian oil and gas.
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2:08
Will US sanctions on Russian oil hurt the Kremlin?
Mr Orban, the country’s nationalist leader and a long-time ally of Mr Trump, has described access to Russian energy as a “vital” issue for his landlocked country.
He said he planned to discuss with Mr Trump the “consequences for the Hungarian people” if the sanctions came into effect.
Speaking at a news conference after his talks with Mr Trump, Mr Orban said Hungary had “been granted a complete exemption from sanctions” affecting Russian gas delivered to Hungary from the TurkStream pipeline and oil from the Druzhba pipeline.
“We asked the president to lift the sanctions,” Mr Orban said. “We agreed and the president decided, and he said that the sanctions will not be applied to these two pipelines.”
Mr Trump appeared to be sympathetic to Mr Orban’s pleas.
“We’re looking at it, because it’s very different for him to get the oil and gas from other areas,” he said.
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2:43
Why did Trump sanction Russian oil?
“As you know, they don’t have … the advantage of having sea. It’s a great country, it’s a big country, but they don’t have sea. They don’t have the ports.”
He added: “But many European countries are buying oil and gas from Russia, and they have been for years. And I said, ‘What’s that all about?'”
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0:47
Putin: US sanctions are an ‘unfriendly act’
Orban says ‘miracle can happen’ in Ukraine war
Mr Trump and Mr Orban also discussed the war in Ukraine, with the US president saying: “The basic dispute is they just don’t want to stop yet. And I think they will.”
The president asked Mr Orban if he thought Ukraine could win the war, with the prime minister saying a “miracle can happen”.
Hungary reliant on Russian gas and oil
As part of the discussions, Hungary agreed to buy US liquefied natural gas (LNG), the US state department said, noting contracts were expected to be worth around $600m (£455m).
The two nations also agreed to work together on nuclear energy, including small modular reactors.
Mr Orban also said Hungary will also purchase nuclear fuel from the US-based Westinghouse Electric Company to power its Paks nuclear plant, which has until now relied on Russian-supplied nuclear fuel.
International Monetary Fund figures show Hungary relied on Russia for 74% of its gas and 86% of its oil last year. It warned an EU-wide cutoff of Russian natural gas could result in output losses in Hungary exceeding 4% of its GDP.
Donald Trump declared a questionable “national energy emergency” when he entered the White House. Soon, he may have one for real.
The president promised his America would “drill, baby drill” to new levels of prosperity by making the most of its reserves of oil and gas.
Mr Trump has now axed hundreds of billions in tax breaks and grants for low-carbon power and clean energy research and given them instead to fossil fuel investments.
Image: Construction continues on Revolution Wind but the project is not yet connected to the grid. Pic: Reuters
There’s no better example than Revolution Wind, one of the largest offshore renewable energy projects in America.
Nearly 80% complete, the White House ordered an immediate halt.
When we visited, the massive 200m-wide turbines were going round – a temporary injunction has allowed construction to continue – but they’re not yet connected to the grid.
As long as Mr Trump is in power, it’s not certain they’ll ever be.
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The future of other major wind and solar developments is also in doubt, as is more than $100bn (£75bn) in clean energy investment.
There’s less doubt about the fossil fuel business however. The industry is getting what it asked for after backing Mr Trump’s re-election.
US energy secretary Chris Wright and many key White House staff and advisers are former fossil fuel industry insiders.
Analysis for Sky News, by Global Witness, reveals that since the Paris Agreement was signed in 2015, US oil and gas production has grown five times faster than the average of the world’s next largest producers.
An increase that really took off during Mr Trump’s first presidency.
The analysis of company data goes on to reveal how US oil and gas production is now forecast to continue growing – by 2035 to double that of its next closest rival, Russia.
“Instead of reducing investment in dirty oil and gas, the principal drivers of climate breakdown, the US has doubled down on fossil fuels, ramping up production,” said Patrick Galey, of Global Witness.
A fact that would probably be music to the president’s ears and to many conservative Americans who voted for him.
Image: US oil and gas production is forecast to grow to double that of Russia’s by 2035
Mr Trump’s “energy emergency” was perhaps a predictable response to the “climate emergency” invoked by his political rivals.
The only problem is, apart from accelerating global warming, his energy plan is on course to make America worse off.
‘US energy demand to grow 25%’
For the first time in years, US electricity demand has been going up. It is driven in part by a race to build power-hungry data centres – further encouraged by Mr Trump’s aim for American supremacy in AI.
Demand is rising and renewable energy is the quickest, cheapest way to meet it.
Image: Data centres require vast amounts of power. Pic: Reuters
President Trump has championed supremacy in AI – backing investments in and clearing red tape for massive energy-hungry data centres.
After declining, then remaining stable for years, US energy demand is now forecast to grow 25% by 2030, according to analysis by ICF International.
But where will all the electricity come from?
We went to Mitsubishi Power, which makes state-of- the-art gas turbines for power stations at its factory outside Savannah, Georgia.
Demand for new turbines has never been greater, according to Bill Newsom, the US CEO. Wait times for new turbines is now double what it was just two years ago.
Image: Mitsubishi makes gas turbines for power stations at its factory outside Savannah, Georgia
And while America will need gas to meet rising demand – it’s twice as clean as coal and provides “baseload” power that renewable energy grids can’t yet match – it can’t be built fast enough.
American businesses, including AI, will likely suffer because they can’t get the power they need.
US consumers – who Mr Trump promised lower bills – will end up paying more because he also made renewable energy more expensive.
And that’s to say nothing of the impact on carbon emissions.
The speed of transition being called for to meet the 1.5C Paris target was always going to be very expensive, as countries like the UK are finding out.
But by fighting one “emergency” with another, Mr Trump risks making Americans – and the climate – worse off.
A new theory suggests dark matter and dark energy may not exist. Physicist Rajendra Gupta’s model proposes that the universe’s forces weaken over time, naturally explaining cosmic expansion and galactic motion without unseen matter or energy.