Trump Media & Technology Group shares have been on a downward spiral, reaching their lowest level since their listing on the Nasdaq exchange in late March. The stock was down over 10% to $36.44 in late-day trading on Monday. The company, with former President Donald Trump as its largest shareholder, trades under the ticker symbol “DJT” and initially surged to a high of $79.38 after its market debut on March 26, valuing it at more than $9 billion.
Since reaching its peak, the stock has fallen 54%, with Trump Media’s market capitalization dropping to less than $5 billion. The company’s main asset is the social media service Truth Social, which generated $4.1 million in revenue in 2023. A regulatory filing earlier this month disclosed mounting losses, with the company’s accountant warning of “substantial doubt about its ability to continue as a going concern.”
Trump Media has mainly attracted supporters of the former president and retail investors looking to capitalize on the hype, rather than institutional and professional investors. A senior portfolio manager noted that DJT has the characteristics of a meme stock due to the Trump news factor. In a statement to CBS MoneyWatch on April 5, a Trump Media spokesperson mentioned the company’s vision for expanding and enhancing Truth Social, highlighting its lack of debt and over $200 million in cash. Despite these efforts, it remains uncertain whether DJT can recover from its current slump and return to its former glory as a successful public company.
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