Trump Media’s shares plummet 12% as second week of trading comes to a close

Donald Trump’s media business, Trump Media & Technology Group, faced a rough week on the stock market as shares closed at a new low since listing on the Nasdaq exchange. The company’s stock, trading under the ticker symbol “DJT,” fell 12% to $40.59, marking its lowest level since its debut on March 26. Trump Media, which operates the Truth Social platform, saw its shares slide more than 32% for the week, resulting in a $4 billion loss in market value.

Initially, Trump Media shares soared to $79.38 on March 26, but Wall Street analysts have raised concerns about the company’s financial outlook, deeming it overvalued and likening it to “meme” stocks like GameStop.

Despite the challenges, a Trump Media spokesperson expressed optimism about the company’s future, highlighting its debt-free status and $200 million in the bank. The spokesperson emphasized plans to expand and enhance the Truth Social platform to become a leading free-speech platform for Americans.

In 2023, Trump Media reported a loss of $58 million on revenue of $4.1 million, with its auditor expressing doubts about its ability to continue operating. However, Trump Media CEO Devin Nunes remains confident in the company’s stability and growth potential, citing its lack of debt and substantial cash reserves.

With Donald Trump owning 57% of Trump Media shares valued at $3.3 billion, the company’s performance on the stock market continues to be closely watched by investors and analysts.