NEW YORK, NY – Shares of the Trump Media & Technology Group, founded by former President Donald Trump, took a sharp nosedive on Monday, plunging over 10 percent to its lowest point since the company’s initial public offering six months ago. The stock, which trades under the ticker DJT, closed at $12.15 a share, marking the sixth consecutive day of decline.
Market analysts attribute the significant drop in the stock price to a variety of factors, including skepticism surrounding the company’s financial health and the recent expiration of a lockup period that allowed major investors, including Trump himself, to potentially sell off their shares. Trump, who holds nearly 60 percent of the company’s shares, reassured the public that he had no intentions of dumping his stock, emphasizing his commitment to the company’s success.
Despite Trump’s assurances, concerns over the company’s future viability persist. Trump Media & Technology Group’s stock has lost more than 80 percent of its value since its highly anticipated launch in March, when it reached a peak market capitalization of $9.5 billion. The company’s flagship social media platform, Truth Social, has also failed to gain significant traction, with critics noting that it primarily serves as a platform for Trump’s own viewpoints rather than fostering a diverse community of users.
Financial reports from the company further underscore its challenges, with Trump Media reporting a net loss of over $16 million for the quarter ending June 30. With quarterly revenue dipping by 30 percent compared to the previous year, investors remain wary of the company’s ability to deliver sustainable growth.
The volatile nature of DJT stock, often described as a “meme” stock, has added an additional layer of uncertainty for investors. While the stock briefly surged following an incident targeting Trump in July, it has largely trended downwards in the months since. Despite these challenges, Trump continues to express confidence in the company’s prospects, highlighting his vision for Truth Social as a platform for open expression.
As Trump Media & Technology Group grapples with its dwindling stock value and tepid user engagement on Truth Social, industry experts remain divided on the company’s long-term prospects. With mounting financial losses and a lackluster performance in the market, the future of Trump’s media venture hangs in the balance, as investors and analysts closely monitor its trajectory in the coming months.