Shares in Trump Media & Technology Group closed at a new low since listing on the Nasdaq exchange late last month, marking a rocky start for Donald Trump’s media business as a public company.
Trump Media’s stock, trading under the ticker symbol “DJT,” took a significant hit on Friday, dropping $5.56 or 12% to close at $40.59. This marks the lowest level for the company’s stock since its debut on March 26. Throughout the week, Trump Media shares experienced a decline of more than 32%, resulting in a market value loss of approximately $4 billion for the company. Trump Media operates the Truth Social platform endorsed by the former president.
Although Trump Media shares had a remarkable surge, reaching a peak of $79.38 on March 26, financial analysts on Wall Street have expressed doubts about the company’s future financial outlook. They argue that the current valuation is too high and draw parallels to the volatile nature of “meme” stocks such as GameStop.
“We are thrilled to announce that we are now operating as a publicly traded company and have successfully gained access to capital markets,” stated a spokesperson from Trump Media via email.
According to a spokesperson, Truth Social has successfully concluded the financials for the merger in 2023. As a result, the platform currently boasts a debt-free status and a substantial $200 million in its bank account. This financial position opens up exciting prospects for the platform, as it can now explore various avenues for expansion and further improvement. The spokesperson emphasized their intention to leverage these opportunities to transform Truth Social into the ultimate free-speech platform for the American populace.
In 2023, Trump Media reported a loss of $58 million on revenue of $4.1 million. The company’s ability to continue operating has also raised concerns, as highlighted in a regulatory filing. However, it’s important to note that this current financial position does not necessarily indicate future performance, and there is still potential for growth and profitability in the coming quarters.
Trump Media’s stock has experienced a significant surge in value despite the challenges it has faced. Previously known as Digital World Acquisition Corp., Trump Media merged with the shell company earlier this year. Devin Nunes, the CEO of Trump Media, has expressed confidence in the company’s stability and potential for growth. He highlighted that the company is debt-free and has over $200 million in cash reserves.
Donald Trump’s stake in Trump Media is valued at $3.3 billion, representing 57% of the company’s shares.
