Trump Media’s Stock Spikes After Weeks of Losses

0 0
Read Time:2 Minute

Trump Media & Technology Group Stock Rebounds

Trump Media & Technology Group’s stock experienced a significant surge on Wednesday, marking the end of a period of losses that had persisted for several weeks. Shares in Trump Media, the company responsible for the launch of former President Donald Trump’s Truth Social platform, rose by nearly 22% during afternoon trading. This spike saw its shares reach a peak of $27.77, resulting in a market capitalization of $3.8 billion, effectively recovering some of the losses it had incurred in recent weeks. However, the stock price eventually dropped, closing at $26.40 per share.

Market Performance and Recent Fluctuations

Trump Media went public on the Nasdaq under the ticker DJT on March 26, following its merger with Digital World Acquisition Corp., a special purpose acquisition company (SPAC). Initially, the stock traded at a high price of $79.38 during its first week, leading to an $8 billion market capitalization. However, the company experienced a decline exceeding $4 billion, with the stock price plunging to an all-time low of $22.55 per share earlier in the week.

Challenges Faced by Trump Media

The decline in Trump Media’s stock value can be attributed to a series of setbacks the company encountered. In 2023, the company reported an operational loss of approximately $16 million, coupled with an interest expense of $39.4 million, despite generating only $4.1 million in revenue. This marked a significant contrast to the figures from 2022, where operating losses stood at $23.2 million, an interest expense of $2 million, and revenue of $1.5 million.

See also
Trump's Potential Running Mate List Includes Sen. Katie Britt

Following this financial disclosure, the stock continued to plummet as Trump Media initiated the resale of a substantial portion of its outstanding securities. Additionally, shares held by specific insiders are still under a lock-up agreement set to expire in August or September, further impacting market performance.

Another downturn occurred when Trump Media announced plans to launch a live TV streaming platform. Described as being independent of major tech companies, the streaming service aims to offer content that is either facing cancellation or suppression on other platforms. This strategic move led to another decrease in the company’s stock value.

Ownership Structure and Future Prospects

Donald Trump owns 78.75 million shares, representing approximately 57.6% of Trump Media’s outstanding shares since its inception. Moreover, the former president stands to receive up to 36 million earnout shares if the stock maintains a volume-weighted average price above $12.50 for at least 20 trading days within a 30-day period, indicating a potential opportunity for future growth and recovery.

Image/Photo credit: source url

About Post Author

Chris Jones

Hey there! 👋 I'm Chris, 34 yo from Toronto (CA), I'm a journalist with a PhD in journalism and mass communication. For 5 years, I worked for some local publications as an envoy and reporter. Today, I work as 'content publisher' for InformOverload. 📰🌐 Passionate about global news, I cover a wide range of topics including technology, business, healthcare, sports, finance, and more. If you want to know more or interact with me, visit my social channels, or send me a message.
Happy
Happy
0 %
Sad
Sad
0 %
Excited
Excited
0 %
Sleepy
Sleepy
0 %
Angry
Angry
0 %
Surprise
Surprise
0 %