Trump Media Stock Continues to Decline

Trump Media & Technology Group’s stock took another hit today, falling over 1% in premarket trading. This decline comes on the heels of former President Donald Trump’s recent return to X, the platform formerly known as Twitter, where he interacted with Elon Musk.

This was the first time Trump had posted on X since August 24, 2023. The parent company of Trump’s social media platform, Truth Social, also witnessed a rough day, with shares closing down about 5% to around $25.

On Friday, DJT released its second quarter results, which revealed a significant net loss of $16.4 million. Half of this loss was related to expenses from the company’s SPAC deal. Revenue for the quarter ending June 30 barely reached $837,000, marking a 30% drop compared to the same period last year.

Previously, reports showed that Trump Media had sales of just over $4 million, while its net losses for the full year ending December 31 were nearing $60 million. The company warned that they expect losses to continue due to challenges with profitability.

Recently, shares of DJT have been on a rollercoaster ride, swinging between highs and lows. Back in June, the stock fell after Trump participated in his first presidential debate of 2024. Following Biden’s withdrawal from the race a month later, shares faced increased pressure as Vice President Kamala Harris emerged as the likely Democratic nominee.

This year has also been challenging for Trump, especially after facing legal issues regarding alleged falsifying business records related to the 2016 campaign, which caused a significant drop in shares by 5%.

DJT did go public on the Nasdaq after merging with the special purpose acquisition company Digital World Acquisition Corp., but shares have plummeted by about 50% since then. Trump initiated Truth Social after being banned from major social media platforms like Facebook and Twitter back in 2021. He has since regained access to those platforms.

Trump still has a substantial stake in DJT, which stands at about $2 billion with the stock currently around $25 a share. Right after the company first went public, his stake was valued at over $4.5 billion. Recently, the stock surged after securing an additional $1.2 billion, although shareholders are still in a six-month lockup period before they can sell or transfer their shares.