GrabAGun's Shares Plummet Amidst Trump Jr.'s Lackluster Pitch

GrabAGun shares have slumped 50% since its public debut, despite Donald Trump Jr.'s endorsement. The online firearms retailer's stock is trading below its initial public offering price of $10. Investors seem uninterested in anti-woke companies, with Matthew Tuttle, CEO of Tuttle Capital Management, stating that they invest to make money, not due to political affiliations. Tuttle expects GrabAGun to recover due to its association with influential conservative figures.

GrabAGun Digital Holdings Inc. (PEW) has seen its stock price plummet 50% since its public debut, trading below its initial offering price of $10. The online firearms retailer, which made its debut on the New York Stock Exchange (NYSE) on July 16, 2025, has faced significant headwinds despite the backing of Donald Trump Jr. [1].

The stock's initial opening price was around $21, but it quickly fell to $17.33, marking a nearly 19% drop by mid-morning. This decline has continued, with the stock now trading at $5.00, down from its initial public offering (IPO) price of $10.00. The sharp selloff is attributed to concerns over the company's high debt load, market volatility, and general skepticism towards SPAC listings [1].

GrabAGun's SPAC merger with Colombier Acquisition Corp. II (CLBR) raised $179 million in gross proceeds, netting approximately $119 million after expenses. The company's debt-to-asset ratio stands at 91%, raising eyebrows among investors. High leverage can limit future flexibility, especially in volatile markets. Additionally, the company's business model—a tech-first e-commerce platform selling firearms and outdoor gear—relies on sustained demand in a sector prone to regulatory volatility [1].

Donald Trump Jr.'s involvement as a board member and shareholder added political visibility and conservative investor interest. However, his presence did not prevent the sharp selloff, suggesting that political symbolism is a weak substitute for sound financials in politically sensitive sectors [2].

Matthew Tuttle, CEO of Tuttle Capital Management, has stated that investors like himself are not swayed by political affiliations but rather focus on making money. Despite the current downturn, Tuttle expects GrabAGun to recover due to its association with influential conservative figures. However, the stock's performance will ultimately depend on the company's ability to address its financial risks and operational challenges [2].

In summary, GrabAGun's stock has faced significant challenges since its public debut, with concerns over high debt, market volatility, and regulatory risks contributing to its decline. While political backing may provide short-term visibility, the company's long-term success will depend on its ability to navigate these challenges and demonstrate financial stability.

References:
[1] https://m.economictimes.com/news/international/us/grabagun-digital-holdings-inc-pew-crashes-19-on-nyse-debut-despite-donald-trump-jr-hype-what-went-wrong-and-is-there-a-bounce-ahead/articleshow/122578321.cms
[2] https://www.ainvest.com/news/trump-jr-backed-gun-retailer-grabagun-troubled-nyse-debut-implications-retail-defense-stocks-2507/