NEW YORK, NY – Trump Media’s shares closed trading Friday down nearly 20% for the week, reflecting a continued slump in the company’s performance.
The decline in DJT shares, dropping by more than 8% within the first hour of trading, eventually saw a slight gain by the end of the day. The closing price marked an increase of around 0.5%, with shares ending at $32.59, up 18 cents from the previous day.
This closing price is significantly lower than the initial selling price of Trump Media’s shares when the social media company first went public on March 26th. Since then, the company’s shares have plummeted by 47.4% in April alone, erasing billions of dollars in market capitalization.
Former President Donald Trump, the company’s largest shareholder with nearly 60% of its stock, is currently awaiting jury selection for his criminal trial on charges related to a hush money payment to Stormy Daniels.
Trump Media’s initial trading day on March 26 saw shares priced at $70.90, reaching a high of almost $80. By the end of that day, the company’s market capitalization exceeded $9.5 billion.
However, as of Friday’s close, Trump Media’s market cap stood at $4.45 billion, marking a significant drop from its recent high. The company went public the day after merging with Digital World Acquisition Corp., which facilitated its transition into the public market.
With a reported revenue of just $4.1 million and a net loss of $58 million last year, Trump Media’s high stock price has attracted interest from short sellers. Short interest in DJT currently amounts to $208.7 million, with fewer than 100,000 shares available for borrowing.
Traders who had previously needed up to 900% in annual financing costs for shorting Trump Media shares have seen a significant decrease, now standing at 200%. This change in financing costs may suggest shifting sentiments towards the company’s stock performance.