Trump Media Stock Swoons As Donald Trump's Social Media Outfit Loses $58 Million – Investor's Business Daily
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Shares of Trump Media & Technology Group (DJT) dropped Monday as federal regulatory filings showed former President Donald Trump’s social-media parent company lost more than $58 million in 2023.
DJT stock, which began trading on the Nasdaq last week, sank more than 21% to 48.66 amid heavy trading during market action Monday. Trump Media & Technology, the owner of Truth Social, reported Monday a loss of $58.19 million in 2023 on revenue totaling $4.13 million, up from $1.47 million in 2022, according to U.S. Securities and Exchange Commission (SEC) filings.
On March 26, Trump Media stock jumped more than 16% to 57.99, hitting a high of 79.38 intraday. This followed Digital World Acquisition becoming Trump Media & Technology Group after successfully merging with Trump’s tech and social-media platform on March 22.
DWAC took Trump Media and Technology Group, or TMTG, public in a reverse merger. After a prolonged battle, DWAC stockholders on Friday voted in favor of the special purpose acquisition company’s merger with TMTG. Trump Media is the parent of the conservative social-media platform Truth Social. DWAC now operates as Trump Media & Technology Group under the DJT stock symbol.
DJT shares have gained more than 7% since the conversion. In 2024, DJT/DWAC has gained more than 200%.
Barron’s reported Friday that, according to research firm S3 Partners, DWAC/DJT shorts had lost $158 million in 2024, including $93 million in March. Short sellers borrow stock in order to sell it, then look to buy it back at a lower price.
Former President Donald Trump holds a nearly 60% stake in TMTG, which is valued north of $4 billion, based on the current price of Trump Media stock.
Truth Social originally launched after Twitter, now X, shut down Trump’s account following the Jan. 6, 2021, riot at the U.S. Capitol.
In October 2021, Truth Media and DWAC announced their plan to merge. Federal investigations delayed the proposed merger for years. However, on Feb. 14, DWAC announced the U.S. Securities and Exchange Commission (SEC) proclaimed the merger’s registration statement was effective, approving the proposed combination to go forward.
The Donald Trump brand and the value of Trump Media are closely related. Trump’s current status as the top Republican candidate for president figures squarely into the stock’s gains so far this year. Federal charges could potentially tarnish that brand, according to company filings, although so far that has not been the case.
Trump is also chairman of TMTG while a number of his allies, including his son Donald Trump Jr., are board members.
Ahead of last week’s conversion to DJT and DJTWW, DWAC stock was up around 140% in 2024, according to MarketSurge analysis.
Please follow Kit Norton on X, formerly known as Twitter, @KitNorton for more coverage.
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