Trump Media & Technology Group (DJT), the parent company of Donald Trump's social media platform Truth Social, fell about 13% on Friday, capping a week of volatile trading for its stock.
At its current trading level of about $40.30 per share, Trump Media has a market capitalization of about $5.5 billion, and the former president's stock holdings are worth about $3.1 billion. After the company's blockbuster public offering last week, Trump's stake is now worth just over $4.5 billion.
The stock price drop comes on the heels of an updated regulatory filing earlier this week showing the company is suffering huge losses and faces “greater risks” related to its former president's ties to the platform. Ta.
Trump Media reported a net loss of nearly $60 million for the year ended Dec. 31 on revenue of just over $4 million, according to filings. The company warned that it expects losses to continue as profitability challenges grow.
Late last month, with shareholder approval, Trump Media merged with special purpose acquisition company Digital World Acquisition Corporation and listed on the Nasdaq.
The former president founded Truth Social after being banned from major social media apps such as Facebook and Twitter, the platform now known as X, following the January 6, 2021 Capitol riot. Trump has since returned to these platforms.
In its application, Truth Social calls for a “'home' for canceled content creators” and a space for “honest global conversations without fear of censorship or cancellation” based on political viewpoints. We maintained our goal of providing.
The filing also revealed that interested parties are still subject to a six-month lock-up period before the sale or transfer of shares.
Trump faces a $454 million fraud fine and is selling some of his shares in the company as he faces a campaign cash crunch for his rematch with Biden in the 2024 election. The cash opportunity could help Trump. Trump recently posted $175 million bail in the fraud case, so the final payment is on hold while he appeals the verdict.
The only exception to the lock-up period is if the company's board of directors resolves to implement special measures. While possible, experts told Yahoo Finance last week that the effort would likely result in multiple lawsuits on behalf of public shareholders.
