New York City, NY – Shares of Trump Media & Technology Group, the parent company of former President Donald Trump’s social media platform Truth Social, experienced a significant increase early Friday despite initial losses in extended-hour trading. This rise, around 6%, followed news that Trump had been found guilty on all 34 counts of falsifying business records related to the 2016 presidential campaign. Trump, who plans to appeal the verdict, is set to be sentenced on July 11 and could face up to four years in prison for each count.
Trump Media, the overseeing entity of Truth Social, made its debut on the Nasdaq exchange after merging with special purpose acquisition company Digital World Acquisition Corp. The company’s shares had previously seen a 10% decline since its public introduction in March. Trump had launched Truth Social after being banned from major social media platforms following the January 6th Capitol riots in 2021. Although he has since been reinstated on those platforms, he was notably active on Truth Social during his trial.
Financial reports revealed that Trump Media reported sales of $4 million with net losses nearing $60 million for the full year ending December 31. The company anticipates ongoing losses due to increasing profitability challenges. First-quarter results in May showed losses of $327 million, mainly attributed to expenses linked to the SPAC deal. Over 621,000 shareholders held stock in Trump Media by the end of April, primarily retail investors.
Trump retains a 60% stake in Truth Social, with his stake valued at approximately $4.2 billion based on Thursday’s closing price. A milestone in late April secured Trump an additional $1.2 billion, subjecting stakeholders to a six-month lockup period before trading shares. Despite initial setbacks, the company’s stock showed resilience, bouncing back from post-conviction sell-off. The ongoing developments surrounding Trump Media and Truth Social continue to attract attention and scrutiny in the financial and political spheres.