Shares of Trump Media & Technology Group continued to plummet on Monday, pushing the company's stock to its lowest level since debuting on the Nasdaq exchange at the end of March.
By the end of the trading day, the stock had dropped by $4.15, a decrease of over 10%, settling at $36.44. Former President Donald Trump, the company's largest shareholder, saw the stock soar to $79.38 following its initial public offering on March 26, giving it a valuation of over $9 billion.
However, since reaching this peak, the stock has tumbled by 54%, causing Trump Media's market capitalization to dwindle to under $5 billion.
Trump Media, known for its flagship social media platform Truth Social, reported $4.1 million in revenue for 2023. In a recent regulatory filing, the company revealed increasing losses, with its accountant expressing concerns about its future viability as a growing enterprise.
Despite its struggles, Trump Media has primarily attracted followers of the former president and individual investors seeking to capitalize on the hype, rather than major institutional or professional investors.
"The potential for DJT to become a meme stock is high, given the constant stream of news surrounding Trump," remarked Ben Emons, who serves as the senior portfolio manager and head of fixed income at NewEdge Wealth, in a research memo at the end of March.
Addressing CBS MoneyWatch on April 5, a spokesperson for Trump Media expressed optimism about the future of Truth Social, stating that the company envisions "numerous opportunities for growth and improvement." The spokesperson also highlighted that the company is debt-free and holds over $200 million in cash.
