Shares of Trump Media plummet on the stock market | The Hill


Shares of Trump Media plummet on the stock market | The Hill

Trump Media & Technology Group, the parent company of Trump’s Truth Social platform, experienced a drop in its share price to $48.66 at the end of trading on Monday. This marked a decrease of $13.30 from its opening price of $59.83. The company had initially performed well on the stock market, with an impressive debut that saw its share price reach $79.38 on its first day of trading last month.

The merger between Trump Media and “blank check” company Digital World Acquisition Corp. (DWAC) facilitated Trump’s social media company to go public. However, the company’s shares took a hit after reporting a loss of $58 million last year in filings with the Securities and Exchange Commission (SEC). Despite these challenges, the company remains focused on expanding its user base, attracting more platform partners, and advertisers.

In its efforts to enhance its appeal, Trump Media is testing video streaming as part of its operations. The company acknowledged that it anticipates continued operating losses and negative cash flows in the foreseeable future as it strives to grow its user base and secure more platform partners and advertisers. It emphasized that its ability to achieve profitability and positive cash flow hinges on the success of these expansion efforts.

Given the current uncertainties surrounding its operations, Trump Media believes it is premature to predict when it will reach profitability and positive cash flows. The company remains committed to its growth strategies but acknowledges the challenges ahead. Analysts like The Hill’s Sylvan Lane are closely monitoring the developments within Trump Media & Technology Group.

Leave a Reply