New York, NY – Shares of Trump Media & Technology Group, the parent company of former President Donald Trump’s social media platform Truth Social, saw a resurgence in trading after Trump was found guilty on all 34 counts of falsifying business records related to influencing the 2016 presidential campaign. Despite facing potential prison time, Trump’s company experienced a 6% increase in stock value on Friday morning.
Trump Media made its public debut on the Nasdaq following a merger with special purpose acquisition company Digital World Acquisition Corp. However, since its launch at the end of March, the company has seen shares drop by about 10%. Trump founded Truth Social in response to being banned from mainstream social media platforms following the Capitol riots in 2021, opting to use his platform exclusively during his trial.
Financial reports from Trump Media showed sales of over $4 million with net losses nearing $60 million for the year ending Dec. 31. The company expects to continue facing challenges in profitability and disclosed losses of $327 million in the first quarter of the year, largely due to expenses from the SPAC deal. Over 621,000 shareholders, mostly retail investors, hold stock in Trump Media.
Maintaining a 60% stake in Truth Social, Trump’s personal stake in the company is valued at around $4.2 billion based on Thursday’s closing price of $52 per share. A milestone hit in April secured Trump an additional $1.2 billion, but shareholders are under a six-month lockup period before they can sell or transfer shares. Despite the legal challenges faced by the former president, interest and investment in his media venture remain strong.
As Trump continues to fight the guilty verdict and potentially appeal, the future of Truth Social and Trump Media remains uncertain. The financial performance of the company, combined with ongoing legal battles, will determine the success and longevity of the social media platform in the competitive tech landscape. Analysts and investors alike are closely monitoring the developments surrounding Trump’s media venture as it navigates through legal and financial hurdles on its path to growth.