Trump Media & Technology Group’s Share Price Plummets as Company Foresees Continued Losses

Trump Media & Technology Group, the parent company of Trump’s Truth Social platform, experienced a significant drop in its share price on Monday. The company ended trading at $48.66, down $13.30 from its opening price of $59.83. Despite a strong stock market debut last month when its share price reached $79.38, the company’s shares took a hit after reporting a $58 million loss last year in filings with the Securities and Exchange Commission (SEC).

The company merged with “blank check” company Digital World Acquisition Corp. (DWAC) last month, which allowed Trump’s social media company to become publicly traded. However, Trump Media stated on Monday that it anticipates continuing to incur operating losses and negative cash flows as it focuses on expanding its user base, attracting more platform partners, and advertisers.

In an effort to grow its appeal, the company is testing video streaming services and acknowledges that its ability to become profitable and generate positive cash flow depends on the success of these initiatives in expanding its user base, platform partners, and advertisers. Trump Media believes it is premature to predict when it will attain profitability and positive cash flows from its operations given the uncertainties surrounding its growth strategies.

For a more in-depth analysis of Trump Media & Technology Group’s performance, The Hill’s Sylvan Lane delves further into the details of the company’s financial situation and future growth plans.