Finance

Shares in Trump Media Drop After Securities and Exchange Commission Filing

Published APR 2 2024

Story

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The Facts

Shares in Trump Media & Technology Group, former Pres. Donald Trump's social media company that began trading last week under the ticker "DJT," Monday slumped by more than 20% after the company's Securities and Exchange Commission (SEC) filing worried some investors.
nytimes
The filing showed Trump Media made $4.1M in revenue for 2023 with a net loss of $58.2M. Fourth-quarter sales totaled $750K.
Forbes
Shares in Trump Media, which surpassed $79 after the stock went public last week, closed at $48.66 Monday, less than its initial offering price of $49.95.
ap
Trump, the presumptive Republican nominee for the 2024 presidential election, owns 57.3% of Trump Media shares, which are now valued at $3.83B — approximately $2.5B less than they were worth last week.
CNBC
The filing also shows the six-month lock-up on Trump's shares is still in effect, so as of right now he can't sell his stake.
FOX News
Truth Social, the social media platform that falls under the Trump Media umbrella, started in February 2022 and says it has 8.9M users. Trump Media is currently valued at $6.3B.
FOX News

Sources Split

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The Spin

Anti-Trump narrative

The suspected disconnect between Trump Media's performance and the inflated stock price has now been confirmed. It turns out "anti-wokeness" doesn't sell the way Trump and his allies had hoped. This could spell catastrophe for investors while also not providing Trump the financial windfall he hoped for.

Business Insider

Pro-Trump narrative

No one is denying this is a meme stock, which is attracting as many investors who want to show their support for Trump as it's attracting investors who believe in the company. A little volatility was to be expected. The only thing that may doom Trump Media is a second term for Pres. Joe Biden, but Trump seems on pace to prevent that from happening.