Trump Media stock plummets following announcement of live TV streaming platform launch

Trump Media & Technology Group (DJT) stock took a hit on Tuesday, dropping more than 10% after the company announced the launch of a new live TV streaming platform. The parent company of Donald Trump’s social media platform Truth Social, Trump Media, revealed plans to introduce the live streaming service through the Truth Social app on phones, tablets, and TV.

The streaming content is set to include live TV, news networks, religious channels, family-friendly content like films and documentaries, and other content that has been canceled or suppressed on other platforms. Trump Media went public on the Nasdaq after merging with Digital World Acquisition Corp., but shares have plummeted over 60% since March.

The company’s recent filing to issue over 21 million shares caused the stock to tumble on Monday. Despite the setbacks, Trump maintains a 60% stake in Truth Social, with Trump Media’s market cap standing at around $3.2 billion.

Trump founded Truth Social after being banned from major social media platforms following the Capitol riots in 2021. The company reported sales of $4 million with net losses nearing $60 million for the year ending Dec. 31. Trump faces a $454 million fraud penalty and struggles with fundraising ahead of a potential 2024 election rematch against Biden.

The former president posted a $175 million bond in the fraud case, delaying the final payment while he appeals the verdict. With ongoing challenges and legal battles, Trump Media’s future remains uncertain in the competitive streaming landscape.