Former President Donald Trump’s media company, Trump Media & Technology Group, is facing turbulence on Wall Street after experiencing a steep drop in its stock value. The company, which trades under the ticker DJT, saw a significant decline of 18.4% in Monday trading, following a 21% plunge the previous week. This decline was precipitated by a filing with the U.S. Securities and Exchange Commission that opened the possibility for the future sale of millions of shares, including those held by investors and company insiders, as well as those held by Trump himself under a “lockup” deal.
The sharp drop in the company’s stock price has resulted in a massive erosion of value for Trump, with his 57% ownership position initially valued at $6.25 billion now reduced to $2.1 billion, representing a significant paper loss of $4.15 billion. Despite the decline, there remains a loyal investor base consisting of Trump supporters who are optimistic about a potential recovery in the stock price. Some investors are even taking advantage of the lower share prices to increase their holdings in the company.
With approximately 200,000 new retail investors joining the mix, the stock has experienced drastic fluctuations since its debut on March 26, drawing comparisons to the volatile nature of “meme” stocks like GameStop. Trump’s presence on his primary social media platform, Truth Social, has been instrumental in attracting investors, despite the company’s financial performance last year showing a loss of $58 million on revenue of $4.1 million. The future trajectory of Trump Media & Technology Group remains uncertain as the company navigates the challenges of the stock market and investor sentiment.