The nascent media business of former President Donald Trump, Trump Media & Technology Group, faced a rocky start as a public company with its shares closing at an unprecedented low on the Nasdaq exchange. On Friday, the company’s stock, trading under the ticker symbol “DJT,” plummeted by 12% to $40.59, reaching its lowest level since its debut on March 26. Throughout the week, Trump Media shares dropped by more than 32%, resulting in a market value loss of approximately $4 billion for the company.
Trump Media initially soared to $79.38 on the day of listing, but Wall Street analysts have raised concerns about the company’s financial future, likening it to “meme” stocks like GameStop. Despite this, a Trump Media spokesperson expressed optimism about the company’s public status and access to capital markets. However, Trump Media revealed a loss of $58 million on revenue of $4.1 million for 2023, with its auditor warning about its ability to sustain operations.
Despite facing challenges, Trump Media has shown remarkable resilience since its merger with Digital World Acquisition Corp., which initiated the company’s public listing. CEO Devin Nunes highlighted the company’s stability and growth potential, emphasizing its lack of debt and over $200 million in cash reserves. Additionally, Donald Trump himself owns 57% of Trump Media shares and holds a stake valued at $3.3 billion, reflecting his continued involvement in the company and his belief in its potential for future growth and profitability.
