Donald Trump’s media business, Trump Media & Technology Group, has hit a new low in the stock market since its debut on the Nasdaq exchange last month. Shares in the company, trading under the ticker symbol “DJT,” closed at $40.59 on Friday, marking a 12% drop and the lowest level since its listing on March 26. The company, which operates the Truth Social platform, has seen its shares slide more than 32% for the week, resulting in a loss of roughly $4 billion in market value.
Initially, Trump Media shares surged to a high of $79.38 on its debut day, but Wall Street analysts have raised concerns about the company’s financial outlook, calling it overvalued and likening it to “meme” stocks like GameStop.
Despite the challenges, a Trump Media spokesperson expressed optimism about the company’s future, highlighting its access to capital markets and financial stability. The company reported a loss of $58 million on revenue of $4.1 million for 2023, with its auditor raising concerns about its ability to continue operating. However, Trump Media CEO Devin Nunes remains confident in the company’s growth potential, emphasizing its lack of debt and $200 million in cash reserves.
Former President Donald Trump, who owns 57% of Trump Media shares, has seen his stake valued at $3.3 billion. The company’s rocky start as a public entity has raised questions about its long-term viability and ability to deliver on its promises of being a free-speech platform for the American people.
