Former President Donald Trump’s legal troubles have had a significant impact on the stock price of his media and technology company, Trump Media & Technology Group (DJT), the parent company of Truth Social. After being found guilty on all 34 counts of falsifying business records related to the 2016 presidential campaign, shares of DJT experienced a rollercoaster ride in the stock market.
Initially, shares fell in extended hours trading post-conviction, only to climb back up. However, the stock has since dropped again, down about 7% in afternoon trading. Trump, who plans to appeal the verdict, is set to be sentenced on July 11 and could face up to four years in prison on each count.
Trump Media went public on the Nasdaq after merging with Digital World Acquisition Corp, but shares have fallen nearly 20% since the company’s debut in March. Trump founded Truth Social after being banned from major social media platforms following the Capitol riots in 2021. Despite being reinstated on other platforms, Trump has been active on Truth Social throughout the trial.
Financially, Trump Media reported sales of $4 million with net losses nearing $60 million for the full year ending Dec. 31. The company warned of ongoing profitability challenges. In May, first-quarter results showed losses of $327 million, largely due to expenses from the SPAC deal. Over 621,000 shareholders own stock in Trump Media, with the majority being retail investors.
Trump maintains a 60% stake in Truth Social, with a current market cap of $6.5 billion. His stake is valued at around $3.9 billion, down from over $4.5 billion at the company’s debut. Despite hitting a milestone that earned Trump an additional $1.2 billion, stakeholders face a six-month lockup period before selling or transferring shares.
The legal troubles facing the former president have undoubtedly impacted his business ventures, with the future of Trump Media and Truth Social uncertain as the legal process unfolds. Stay tuned for updates on this developing story.
