Shares of Trump Media & Technology Group are plummeting, leaving investors in a state of panic. The Truth Social owner’s share price dropped another 5% on Friday, marking a seventh losing day out of the past eight. The company is now trading below $31, a significant drop from its intraday spike to nearly $80 on March 26.
Former President Donald Trump, who owns a dominant stake in the company, has seen a massive dent in his net worth as a result of the steep selloff. At the closing high for Trump Media’s stock price, Trump’s stake was valued at $5.2 billion, but has since plummeted to about $2.4 billion.
Despite the company’s poor financial performance, Trump Media spokesperson Shannon Devine remains optimistic, stating that Truth Social has created a free-speech beachhead against Big Tech at a fraction of the cost incurred by legacy tech corporations. However, experts have warned retail investors to be cautious with this stock, especially considering Trump Media’s $58 million loss in 2023 on minimal revenue of just $4.1 million.
Billionaire Barry Diller has even gone as far as calling Trump Media a “scam,” while others question the company’s valuation in the billions of dollars. Despite the recent losses, Trump Media stock is still up more than 74% on the year when factoring in gains from the blank-check company it merged with.
The future of Trump Media remains uncertain as the company continues to struggle with financial losses and declining user numbers. Investors are advised to proceed with caution when considering investments in this volatile stock.
