Stock of DJT Plummets 8% Following Trump’s Conviction in Hush Money Trial

Former President Donald Trump’s legal troubles have taken a toll on his media empire, as shares of Trump Media & Technology Group (DJT) plummeted by 8% in extended-hours trading following his guilty verdict on all 34 counts of falsifying business records. The parent company of Truth Social, Trump’s social media platform, is facing a challenging future as the former president prepares to appeal the verdict and potentially serve up to four years in prison on each count.

Trump Media went public on the Nasdaq after merging with Digital World Acquisition Corp, but its stock has fallen by 10% since its debut in March. The company’s financial woes were further highlighted by a regulatory filing showing sales of $4 million and net losses of nearly $60 million for the full year ending Dec. 31.

Despite these setbacks, Trump maintains a 60% stake in Truth Social, with his stake valued at around $4.2 billion at Thursday’s closing price. However, the company’s market cap of $7 billion has taken a hit since its public debut, raising concerns about its long-term viability.

Investors, including over 621,000 retail shareholders, are closely watching the company’s performance as it navigates through profitability challenges. Trump’s legal troubles and the financial implications for his media empire have cast a shadow over the future of Truth Social and Trump Media, leaving stakeholders uncertain about the company’s prospects in the competitive social media landscape.