In late March 2023, the Trump Media & Technology Group, led by former President Donald Trump, made its debut on the Nasdaq exchange. The company’s shares soared to $79.38 during its first day of trading. However, since then, the stock has plummeted by 54% and is now trading at $36.44. This drop has led to a significant fall in the company’s market capitalization to less than $5 billion.
Despite its financial struggles and concerns about its ability to continue as a going concern, Trump Media has garnered attention from supporters of the former president and retail investors seeking to capitalize on the hype surrounding the company.
Experts have likened Trump Media’s stock to a meme stock due to its popularity among investors who were influenced by social media sentiment rather than fundamental analysis.
However, Trump Media remains optimistic about the future of its flagship product, Truth Social. The company plans for expansion and enhancement of this social media service that generated $4.1 million in revenue in 2023.
With no debt and over $200 million in cash, Trump Media believes it has the financial resources to support its growth initiatives and overcome these challenges.
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