In the media industry, Trump Media & Technology Group has had a challenging start as a public company. Shares closed at an all-time low on Friday, falling 12% and hitting $40.59, the lowest level since its debut on the Nasdaq exchange last month. Over the week, shares of Trump Media fell over 32%, resulting in a loss of roughly $4 billion in market value.
Despite initial success with its stock price rising to $79.38 on March 26, Wall Street analysts have expressed concerns about Trump Media’s financial outlook, comparing it to “meme” stocks like GameStop. The company operates the Truth Social platform and aims to become the ultimate free-speech platform for Americans.
Trump Media reported a loss of $58 million on revenue of $4.1 million in 2023, with auditors raising concerns about its ability to continue operating due to its current financial standing. However, there is potential for growth and profitability in future quarters.
Trump Media previously known as Digital World Acquisition Corp., has seen its stock price rise since the merger with Trump Media earlier this year. CEO Devin Nunes remains confident in the company’s stability and growth potential, highlighting its lack of debt and over $200 million in the bank.
Donald Trump owns 57% of Trump Media shares, valuing his stake at $3.3 billion.
It remains to be seen how Trump Media will navigate its financial difficulties and strive for success in the media industry despite these challenges.
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