US Stock Market Update: Trump Media, Coinbase, and Robinhood Plummet

On the 31st of last month (local time), the stock prices of several notable companies, including Trump Media & Technology Group (DJT), Peloton, Robinhood, Coinbase, and Super Micro Computer (SMCI), were affected on the New York Stock Exchange.

Trump Media & Technology Group (DJT) saw its stock price fall 11.72% on this day after plummeting more than 22% the previous day. As the U.S. presidential election approaches on November 5, profit-taking on the sharp rise so far has continued. The company’s stock price has continued to surge recently due to the so-called ‘Trump trade’, which bets on the possibility of former President Donald Trump, the Republican presidential candidate, being elected. Trump owns about 60% of DJT.

Exercise equipment company Peloton Interactive closed trading at $8.50, up 27.82% from the previous day. This is the largest daily increase since August 22nd. This is due to the fact that the performance in the first quarter of the fiscal year exceeded market expectations, and the annual performance guidance was also revised upward.

The company recorded sales of $586 million in the first quarter of the fiscal year, slightly exceeding the expert forecast ($574.8 million) compiled by LSEG. Net loss per share was $0. Markets had expected a loss of 16 cents per share.

American stock trading platform Robinhood plunged 16.73% due to the announcement of third quarter earnings per share (EPS) that were below market expectations the previous day. Coinbase, a virtual asset trading platform, also plunged 15.34% for the same reason.

Due to this effect, Bitcoin mining company Mara Holdings (formerly Marathon Digital Holdings, -8.26%) and Riot Platform (-11.83%), which are virtual asset-related stocks, fell together.

SMCI, an artificial intelligence (AI) server manufacturer, plunged 11.97% today, following a nearly 33% plunge the previous day. Investor sentiment was greatly shaken after the accounting firm Ernst & Young (E&Y) announced the day before that it would resign from its position as auditor of SMCI, citing reasons such as corporate governance, transparency, and independence of the board of directors. Investment research firm Argus downgraded SMCI’s investment opinion from ‘Buy’ to ‘Hold’.