Former President Donald Trump’s media empire, Trump Media & Technology Group (DJT), has been making headlines once again as its stock took a significant hit on Friday, dropping about 13%. This decline marked the end of a turbulent trading week for the company, which has been closely watched since its public debut.
With current trading levels hovering around $40.30 a share, Trump Media’s market cap sits at approximately $5.5 billion, giving Trump himself a stake valued at around $3.1 billion. This is a notable decrease from the over $4.5 billion valuation his stake held just last week.
The stock’s decline followed an updated regulatory filing that revealed the company’s mounting losses and highlighted the increased risks associated with Trump’s involvement with the platform. Trump Media reported sales of just over $4 million, while net losses soared to nearly $60 million for the full year ending Dec. 31. The company cautioned that it anticipates continued losses as it faces profitability challenges.
Trump Media made its public debut on the Nasdaq after merging with Digital World Acquisition Corp., a special purpose acquisition company. The company’s flagship platform, Truth Social, was founded by Trump after he was banned from major social media platforms in the aftermath of the Jan. 6 Capitol riots. Despite his reinstatement on platforms like Facebook and Twitter, Trump has continued to push Truth Social as a space for uncensored conversation.
The regulatory filing also disclosed that stakeholders are subject to a six-month lockup period before they can sell or transfer shares. This restriction could impact Trump’s financial situation, as he grapples with a hefty fraud penalty and a fundraising shortfall ahead of a potential 2024 election rematch against President Joe Biden.
While there is a possibility for the company’s board to make exceptions to the lockup period, experts have warned that such a move could lead to legal challenges from public shareholders. As Trump navigates these financial challenges, the future of Trump Media & Technology Group remains uncertain amidst the volatile trading environment.
