Donald Trump's media business has continued its rocky start as a public company, with shares of Trump Media and Technology Group closing at a new low since then. Listing on the NASDAQ Late last month.
The stock — which trades under the stock symbol “DJT,” the former president's initials — on Friday fell $5.56, or 12%, to close at $40.59 — the company's lowest level since its debut on March 26. Over the course of the week, Trump Media shares fell more than 32%. The company, which operates Trump's Truth Social platform, lost nearly $4 billion in market value during that stretch.
Although Trump Media shares initially rose to a high of $79.38 on March 26, Wall Street analysts have questioned the company's financial outlook, saying they are overvalued and comparing them to… Mimi shares. Like GameStop.
“We are excited to operate as a public company and to secure access to the capital markets,” a Trump Media spokesperson said in an email.
“With the close of 2023 financials related to the merger, Truth Social today has no debt and over $200 million in the bank, opening numerous possibilities to expand and enhance our platform,” the spokesperson said. “We intend to take full advantage of these opportunities to make Truth Social an ideal free speech platform for the American people.”
For 2023, Trump Media reported a loss of $58 million on revenue of $4.1 million. In a regulatory filing, the company also revealed that its auditor had raised concerns about its ability to continue operating. This warning reflects the company's current financial position, meaning it may grow and record profits in future quarters.
Despite Trump Media's challenges, its stock has risen since it traded under its former name, Digital World Acquisition Corp., a shell company affiliated with Trump Media. It merged earlier this year. Devin Nunes, CEO of Trump Media, this week expressed confidence in the company's stability and growth potential, noting that it has “no debt and over $200 million in the bank.”
Donald Trump owns 57% of Trump Media shares, and his stake is estimated at $3.3 billion.
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