New York (CNN) — After a ridiculous spike over the past five weeks that had absolutely nothing to do with the company’s actual business, former President Donald Trump’s social media stock is suffering a sudden setback.
Truth Social owner Trump Media & Technology Group’s share price plunged about 20% on Wednesday afternoon.
If Trump Media finishes with a loss of more than 21%, it would qualify as its worst one-day loss since going public in March.
It’s not clear exactly what caused the sharp reversal for Trump Media, whose share price has become a proxy for how traders think this election will turn out. Trump Media did not release any major news that would explain the nosedive.
Some traders blamed the steep selling on technical factors and a loss of momentum for what has become a meme stock.
Trump Media’s stock has been extraordinarily volatile all year. The stock does not need official corporate announcements to move dramatically …