In late-day trading on Monday, shares of Trump Media & Technology Group fell over 10% to $36.44, reaching their lowest level since the company was listed on the Nasdaq exchange in late March. Despite its initial surge to $79.38 after its market debut, valuing the company at over $9 billion, Trump Media’s stock has dropped by 54%, with the market capitalization falling to less than $5 billion.
The social media platform Truth Social, owned by Trump Media, generated $4.1 million in revenue in 2023. However, a recent regulatory filing revealed increasing losses for the company and doubts about its ability to continue as a growing concern. The company has primarily attracted supporters of former President Donald Trump and retail investors, with professional investors showing little interest in the stock.
Despite these challenges, a company spokesperson stated that Trump Media has no debt and over $200 million in cash, with plans to expand Truth Social. Ben Emons, a senior portfolio manager, described “DJT” as a meme stock due to its association with Trump. The future of Trump Media & Technology Group remains uncertain as ongoing developments and challenges continue to unfold.
