The Trump Media & Technology Group, which operates the Truth Social platform, saw its shares close at a new low since listing on the Nasdaq exchange last month. The stock, trading under the ticker symbol “DJT,” fell 12% to close at $40.59, the company’s lowest level since its debut. It has lost roughly $4 billion in market value since then, and analysts have questioned its financial prospects, comparing it to “meme” stocks like GameStop. Despite the rocky start, Trump Media expressed optimism about its future potential.
In a regulatory filing, Trump Media revealed a loss of $58 million on revenue of $4.1 million for 2023. The company’s auditor also raised concerns about its ability to continue operating, reflecting its current financial position. However, Trump Media CEO Devin Nunes remains confident in the company’s stability and growth potential, emphasizing that they have no debt and over $200 million in the bank. Former President Donald Trump, who owns 57% of Trump Media shares, values his stake at $3.3 billion.
The company’s spokesperson highlighted that Truth Social has no debt and over $200 million in the bank, opening possibilities for expanding and enhancing the platform. Trump Media aims to make Truth Social a leading free-speech platform for the American people. Despite the initial challenges and stock performance, the company intends to capitalize on opportunities for growth and development in the future. The current financial results do not necessarily indicate the company’s long-term profitability potential.
Wall Street analysts have raised concerns about Trump Media being overvalued and compared it to high-flying “meme” stocks. The company’s stock initially soared to $79.38 on its debut, but has since experienced significant declines, with shares sliding more than 32% in a week. The volatility in the stock price reflects uncertainties and skepticism about the company’s prospects in the media and technology industry. Trump Media will need to address these challenges to regain investor confidence and sustain its growth trajectory.
The merger with Digital World Acquisition Corp. earlier this year transformed the former shell company into Trump Media & Technology Group. Despite the challenges faced by the company since its listing on the Nasdaq exchange, CEO Devin Nunes remains optimistic about its future prospects. Trump’s ownership stake in the company, valued at $3.3 billion, demonstrates his continued influence and interest in the media business. The company’s ability to address financial concerns, expand its platform, and deliver on its promises will be crucial in determining its long-term success in the competitive media landscape.
