Shares in Trump Media & Technology Group closed at a new low since its listing on the Nasdaq exchange late last month, marking a challenging start for Donald Trump’s media business as a public company.
Shares of Trump Media, known by its ticker symbol “DJT,” saw a significant decline on Friday, falling by $5.56 or 12% to close at $40.59. This marks the lowest level for the company since its debut on March 26. Throughout the week, Trump Media shares experienced a slide of over 32%. As a result, the company’s market value has decreased by approximately $4 billion during this period. Trump Media operates the Truth Social platform, which is associated with the former president.
Trump Media shares experienced a significant surge, reaching a peak of $79.38 on March 26. However, financial analysts on Wall Street have raised concerns about the company’s financial outlook. They believe that the stock is overvalued and have drawn comparisons to “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,” expressed a spokesperson from Trump Media via email.
According to a spokesperson, Truth Social now has a debt-free status and more than $200 million in its bank account, following the completion of the merger’s financials for 2023. This strong financial position presents a range of exciting prospects for the platform’s expansion and improvement. The spokesperson expressed the company’s determination to leverage these opportunities in order to establish Truth Social as the ultimate platform for free speech, dedicated to serving the American people.
Trump Media reported a loss of $58 million on revenue of $4.1 million for 2023. According to a regulatory filing, the company’s auditor expressed concerns about its sustainability. However, it’s important to note that this assessment reflects the current financial state of the company, and there is potential for growth and profitability in future quarters.
Despite facing challenges, Trump Media’s stock has experienced a significant surge since its merger with Digital World Acquisition Corp., a shell company, earlier this year. CEO Devin Nunes remains optimistic about the company’s stability and potential for growth, highlighting its lack of debt and substantial cash reserves of over $200 million.
Donald Trump’s ownership of Trump Media shares stands at 57%, making his stake worth an impressive $3.3 billion.
