Donald Trump's media empire faced another setback as its stock in Trump Media & Technology Group hit a new low since debuting on the Nasdaq exchange.
The company's shares, trading under the symbol "DJT," dropped 12% on Friday to close at $40.59, marking the lowest point since its launch on March 26. Trump Media, known for its Truth Social platform, saw its shares decline by over 32% for the week, resulting in a $4 billion loss in market value.
Despite an initial surge to $79.38, analysts have raised concerns about Trump Media's financial outlook, labeling it as overvalued and drawing parallels to "meme" stocks such as GameStop.
"We are thrilled to be a publicly traded company and to have gained access to capital markets," expressed a spokesperson for Trump Media via email.
"Closing out the 2023 financials related to the merger, Truth Social today has no debt and over $200 million in the bank, opening numerous possibilities for expanding and enhancing our platform," the spokesperson said. "We intend to take full advantage of these opportunities to make Truth Social the quintessential free-speech platform for the American people."
For the fiscal year 2023, Trump Media reported a loss of $58 million on revenue of $4.1 million. The company also disclosed in a regulatory filing that its auditor had expressed concerns about its ongoing operations. Despite these challenges, Trump Media's stock has seen a significant increase since its merger with Digital World Acquisition Corp., now operating under the name Trump Media. CEO Devin Nunes remains optimistic about the company's future, highlighting its strong financial position with no debt and over $200 million in reserves.
With Donald Trump holding a 57% stake in Trump Media, his ownership is valued at $3.3 billion.
