The parent company of Truth Social, Trump Media & Technology Group, experienced a significant drop in share price after the presidential debate held on Tuesday night.

Shares traded under the ticker DJT fell by over 10% on Wednesday, closing at $16.68.

As previously noted by YSL News, investing in Trump Media has become a way for investors to speculate on Trump’s potential success against Kamala Harris in the upcoming presidential election.

“Stock prices fluctuate based on expectations,” stated Mike Stegemoller, a finance professor at Baylor University in Waco, Texas. “It’s reasonable to conclude that the market anticipated a stronger performance from him in the debate.”

According to regulatory filings, Trump Media’s performance greatly relies on the former president’s standing and alerts that its brand could weaken if his popularity declines. Individual investors, showing support for Trump, have shown interest in these shares.

Another reason why the shares may be declining, noted Jay Ritter, a finance professor at the University of Florida, is the company’s indication that it could issue as much as $2.5 billion in new shares as part of a deal made with Yorkville Advisors in July.

“This increase in potential shares could create selling pressure, which might also be affecting the stock price negatively,” Ritter added.

The stock has seen considerable fluctuations since Trump Media went public in March through a merger with a special purpose acquisition company (SPAC), with a decrease of roughly 75% from its highest closing price in March.

Donald Trump owns close to 60% of Trump Media’s stock, which was valued at nearly $2 billion at market close on Wednesday. A lockup period that has prevented him from selling his shares will end as soon as next week.

If he decides to sell, it could provide funds to offset his legal expenses; however, it could also lead to a surge in shares available on the market, further lowering prices. The Trump campaign has not yet commented on whether Trump plans to sell his shares.

Contributing: Jessica Guynn, YSL News