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Shares of Trump Media experienced a significant drop of over 11% on Monday, further contributing to the company’s decline that has been ongoing since Donald Trump assumed the presidency.
The firm, which operates the social media platform Truth Social, closed the day at $19.92 per share, reflecting a staggering decrease of 50% from its closing price on January 20, the date Trump was inaugurated.
Monday’s trading marked Trump Media’s most challenging day since January 21, when the stock began to retract from a surge driven by excitement surrounding the newly inaugurated president. Since that peak, the company has faced a prolonged streak of seven weeks without a gain.
This downturn, however, is not isolated to Trump Media. The broader market faced significant losses on Monday, with major indexes experiencing increased volatility, continuing the downward trend seen in the prior week. Other media firms with much larger market shares, like Reddit, were also significantly impacted, with some reporting their worst trading days.
Last month, Trump Media disclosed a loss of $400 million for 2024, accompanied by revenues of only $3.6 million, highlighting the financial struggles that the company is facing.
More on Trump Media’s Financial Journey
Trump Media made its public debut on the Nasdaq in March 2024, following a much-anticipated merger with a special purpose acquisition company (SPAC). This event sparked a rise in DJT stock as numerous investors rallied to support the company’s majority owner, then-presidential candidate Trump.
Following his victory on November 5 against former Vice President Kamala Harris, Trump moved to transfer his entire stake of 114,750,000 shares into a revocable trust, a strategic move that raised eyebrows about the company’s future direction.
A spokesperson for Trump Media has yet to provide a comment on the latest stock fluctuations.
— Contributions to this report were made by CNBC’s Adrian van Hauwermeiren.
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