On Friday, the stock of Trump Media & Technology Group dropped 12% to $40.59 on the Nasdaq exchange, marking a new low since its March 26 debut. Despite an initial surge to $79.38 on that day, analysts have expressed concerns about the company’s financial outlook, comparing it to meme stocks like GameStop.
Trump Media operates as a public company with access to capital markets and no debt, boasting over $200 million in cash. The company aims to expand and improve its platform to become the premier free-speech outlet for Americans. In 2023, Trump Media reported a loss of $58 million on revenue of $4.1 million. The company’s auditor raised doubts about its ability to continue operating, although this warning reflects its current financial condition and potential for growth and profitability in the future.
Despite its challenges, Trump Media’s stock has risen since its merger with Digital World Acquisition Corp., with CEO Devin Nunes expressing confidence in the company’s stability and growth prospects. Donald Trump, who owns 57% of the company’s shares, has a stake valued at $3.3 billion.
