Shares of Trump Media & Technology Group (DJT) saw a rollercoaster ride in early trading on Friday, bouncing back from losses to rise about 6% after former President Donald Trump was found guilty on all 34 counts of falsifying business records. The charges were related to his attempts to influence the 2016 presidential campaign.
Despite the guilty verdict, Trump is expected to appeal and will be sentenced on July 11, facing up to four years in prison on each count. The news sent shockwaves through the market, but investors seemed to regain confidence in the company as shares of Trump Media, the parent company of Truth Social, climbed back up.
Trump Media went public on the Nasdaq after merging with Digital World Acquisition Corp, but shares have been on a downward trend since the company’s debut in March. The company reported sales of $4 million with net losses of nearly $60 million for the full year ending Dec. 31, and warned of continued challenges in profitability.
Despite the setbacks, Trump maintains a majority stake in Truth Social, with a stake worth around $4.2 billion at Thursday’s closing price. The company’s market cap sits at roughly $7 billion, giving Trump a significant financial interest in the platform he founded after being banned from major social media apps.
Investors in Trump Media are still subject to a six-month lockup period before they can sell or transfer shares, but the company’s future remains uncertain as it navigates legal challenges and financial struggles. The saga of Trump’s social media venture continues to captivate both investors and the public, with all eyes on the former president as he faces the consequences of his actions.
