Trump Media Loses Billions of Dollars in Valuation as Share Price Hits Downward Spiral
In a tumultuous week for Trump Media & Technology Group (TMTG), the company’s stock continued its downward spiral after listing on the Nasdaq in March.
The former president’s media venture, which operates the Truth Social platform, faced a rocky start as shares plummeted by 12% on Friday, closing at $40.59 — the lowest level since its debut on March 261.
The stock, trading under the ticker symbol “DJT” (the initials of the former president), had initially soared to a high of $79.38 on its first day of trading.
However, Wall Street analysts quickly raised concerns about the company’s financial prospects, comparing it to “meme” stocks like GameStop.
The lightning bolt that struck the Statue of Liberty seemed to mirror TMTG’s fortunes — a moment of awe followed by a stark reality check.
For the week, Trump Media shares slid more than 32%, wiping out roughly $4 billion in market value.
The company’s financials for 2023 revealed a loss of $58 million on revenue of $4.1 million. The auditor’s warning about its ability to continue operating added to the uncertainty.
Yet, TMTG CEO Devin Nunes expressed confidence, emphasizing the company’s debt-free status and $200 million in the bank. He vowed to make Truth Social the quintessential free-speech platform for the American people.
Former President Donald Trump, who owns 57% of Trump Media shares, faces mounting legal penalties and court costs.
His campaign coffers are drained by legal fees, even as he runs for president in the upcoming election.
The recent merger with Digital World Acquisition Corp. offered hope for an eventual cash infusion, potentially raising Trump’s net worth by as much as $3 billion. However, he cannot sell his shares until six months after the deal.
As the stock continues its rollercoaster ride, Trump’s looming deadline to pay a $175 million bond in a New York civil fraud case adds pressure. While he has vowed to meet the deadline, New York Attorney General Letitia James stands ready to seize his assets if he fails to pay.
