The share price of Trump Media, a company owned by former President Donald Trump, dropped by more than 10% on Wednesday afternoon, causing the company’s market capitalization to fall below $5 billion. DJT shares were trading at $33.58 at 1:46 p.m. ET, significantly lower than the $70.90 that the stock opened at on March 26, its first day as a publicly traded company. This decline in share price has resulted in Trump’s stake in the company being worth less than $2.8 billion, a significant drop from the more than $5 billion it was worth just two weeks ago.
On Wednesday, the shares of Trump Media fell below the $36.94 closing price of the former shell company, Digital World Acquisition Corp., on March 22, the day when DWAC shareholders approved the merger with Trump Media. This merger ultimately took the company public a few days later. Trump Media, the parent company of the Truth Social app, reported revenue of only $4.1 million for 2023, along with a net loss of $58 million for the year. These disappointing financial results have contributed to the decline in the company’s share price and market capitalization.
Former President Donald Trump is the largest shareholder in Trump Media, holding a stake of nearly 60% in the company. However, the recent slump in the company’s share price has significantly impacted the value of Trump’s shares, which were worth less than $2.8 billion in midday trading. This represents a substantial decrease from the more than $5 billion in paper value that Trump’s shares were worth just two weeks ago. It is important to note that this information is still developing, and updates should be monitored closely for further insights into the situation.
The decline in the share price of Trump Media has raised concerns among investors and analysts, with questions surrounding the company’s future prospects and viability. The drop in market capitalization below $5 billion is a significant setback for the company, as it struggles to regain investor confidence and establish itself in the competitive media landscape. The performance of the Truth Social app, which is owned by Trump Media, will be closely watched in the coming months to determine its impact on the company’s financial results and overall success.
As this is a developing situation, it is crucial for stakeholders and interested parties to stay informed and up to date with the latest developments regarding Trump Media and its financial performance. The volatility in the company’s share price and market capitalization highlights the challenges facing Trump Media as it navigates the evolving media industry landscape. Further updates and announcements from the company are expected in the near future, shedding light on the steps being taken to address the current challenges and improve its financial position. The performance of the Truth Social app, as well as any strategic initiatives undertaken by Trump Media, will be key factors to monitor in assessing the company’s future prospects and success in the market.
