Shares of Trump Media & Technology Group plunged to $3.85 on November 5, marking a 31% collapse in just three trading sessions as investors priced in a new political reality: a Democratic-controlled Congress with subpoena power aimed squarely at Trump-family business interests.

A Two-Day Wipeout Erased Nearly a Third of the Stock's Value DJT Hits Record Lows After Democrats Sweep Congress — Is a Company Running on $1.7 Million in Revenue Built to Withstand Subpoena Season?

Shares of Trump Media & Technology Group cratered 14.3% to $3.85 on November 5, extending a three-day rout that has erased roughly 35% of the stock's value since Democrats swept both chambers of Congress in Tuesday's midterm elections. The stock is sitting at fresh record lows following the blue sweep. While the broader market actually rallied — the Dow surged 1,500 points after Democrats won back control — DJT moved in the opposite direction, underscoring just how uniquely political this company's risk profile is.

  • Democrats Won Subpoena Power, and Trump's Businesses Are First in Line

Congressional Democrats have an ambitious agenda of investigations and will have the ability to subpoena records and compel testimony — with Trump's business interests among the targets.

The incoming House Oversight chair, Robert Garcia, marked the win with two words: "Lawyer up."

Trump Media reportedly transferred $342 million in Bitcoin to Crypto.com this week, even as Democrats' new majority raises subpoena odds for Trump-linked crypto ventures. For a company whose identity is inseparable from the Trump family, legal exposure doesn't just raise costs — it scares away the advertisers and partners needed to grow.

  • The Fundamentals Were Already Paper-Thin

Trump Media reported Q2 2026 revenue of $1.7 million, up 89% year-over-year, but posted a net loss of $238 million, primarily due to non-cash mark-to-market losses on Bitcoin holdings.

The price-to-sales ratio still sits at an extreme 311x , meaning investors are paying a massive premium on practically no revenue. With Q3 earnings due November 9, any sign of stalled growth could trigger another leg down.

  • Short Sellers Are Piling On at the Worst Possible Moment

Short interest rose 27% during the most recent reporting period , and the stock has now shed 59% in 2026.

Trading volume on November 4 alone hit 22 million shares — more than four times the daily average. That kind of volume signals institutional repositioning, not just retail panic.

  • A Fusion-Energy Merger Is the Last Card to Play — and It Just Got Harder

Trump Media is pursuing an all-stock merger with fusion energy company TAE Technologies and filed a second amended registration statement with the SEC on November 3. The deal still requires shareholder and regulatory approvals. A Democratic Congress with investigative momentum could complicate any regulatory green light, while a collapsing share price dilutes the currency Trump Media would use to close the transaction.

The bottom line: DJT trades less on earnings and more on political sentiment. With investigations likely starting in January, the stock's biggest risk isn't weak revenue — it's the constant headline threat that no balance sheet can hedge.