Donald Trump’s media business, Trump Media & Technology Group, has hit a rough patch since going public on the Nasdaq exchange last month. The company’s shares, trading under the ticker symbol “DJT,” closed at a new low of $40.59, marking a 12% drop on Friday and a total slide of over 32% for the week.
Initially, Trump Media shares surged to $79.38 on its debut day, but Wall Street analysts have raised concerns about the company’s financial outlook, likening it to “meme” stocks like GameStop. The company has lost approximately $4 billion in market value since its listing.
Despite these challenges, a Trump Media spokesperson remains optimistic, highlighting the company’s access to capital markets and financial stability. The spokesperson emphasized that Truth Social, the platform operated by Trump Media, has no debt and over $200 million in cash, positioning it for future growth and expansion.
In its 2023 financial report, Trump Media reported a loss of $58 million on revenue of $4.1 million. The company’s auditor also raised doubts about its ability to continue operating, reflecting its current financial position. However, CEO Devin Nunes expressed confidence in the company’s prospects, citing its lack of debt and substantial cash reserves.
Former President Donald Trump, who owns 57% of Trump Media shares, has seen his stake in the company valued at $3.3 billion. Despite the recent challenges, Trump Media remains focused on establishing Truth Social as a prominent platform for free speech in the United States.
