Former President Donald Trump’s media company, Trump Media & Technology Group, is facing a rocky start in the stock market just a week after going public. The company’s shares, which debuted on the Nasdaq Composite Index under the ticker “DJT,” have taken a hit, losing $3.8 billion in value.
The plunge in Trump Media’s stock price on Monday, coupled with mounting losses disclosed in a regulatory filing, has raised concerns about the company’s future. The stock tumbled 21% to $48.66, representing a 39% drop from its high of $79.38 just days earlier.
Despite the setback, the stock rallied on Tuesday, rising 6% to $51.60. However, the company’s market capitalization remains high at $6.7 billion, making it more valuable than companies like Bausch & Lomb and Harley-Davidson.
Trump, who owns 57% of the company, has seen his stake decrease in value by $2.2 billion due to the stock slide. Despite the financial challenges, Trump Media CEO Devin Nunes remains optimistic, stating that Truth Social has no debt and over $200 million in the bank for future expansion.
While the company’s valuation has drawn comparisons to meme stocks like GameStop, the platform has yet to see significant user growth. Traffic from daily active users fell 23% last week, according to web analytics firm Similarweb.
With Trump’s stake in the company locked up for at least six months, the former president may face challenges in accessing the value of his shares. Despite the stock’s volatility, supporters on Truth Social remain hopeful for a rebound, attributing the decline to short sellers and detractors of the former president.