Frank Franklin II/AP
Pedestrians walk past the Nasdaq Building on Tuesday, March 26, 2024, in New York. Anyone who bought Trump Media at its high closing price of $66.22 on March 27th has now lost more than half of their money.
new york
CNN
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Trump Media & Technology Group’s stock price is plummeting.
The Truth Social owner’s stock was down another 5% as of midday. Friday marked the seventh day in the past eight days that they have lost.
The only increase during this period was a small 0.8% on Tuesday.
Trump Media stock is currently trading below $31. This is a sharp contrast from the intraday spike on March 26, when the stock traded on the Nasdaq under the ticker symbol “DJT,” rising to nearly $80.
In fact, anyone who bought Trump Media at its high closing price of $66.22 on March 27th has now lost more than half of their money.
Former President Donald Trump’s net worth has eroded due to the sharp decline.
Mr. Trump owns an overwhelming 78.8 million shares of the company, but it has generated little revenue and is losing users.
At the highest closing price of Trump Media stock, the former president’s stock was valued at $5.2 billion. The value of those shares has since plummeted to about $2.4 billion.
“Truth Social has created a free speech beachhead for Big Tech by taking on some of the startup and operating costs that traditional technology companies have. We have the support of hundreds of thousands of individual investors who have entrusted more than billions of dollars and passionately believe in our mission,” Trump Media spokesperson Shannon Devine said in a statement to CNN.
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This significant loss highlights why some experts have warned retail investors to be very cautious with this stock.
Trump Media revealed that it suffered a loss of $58 million in 2023 on a very meager income of only $4.1 million.
Despite this, the company is still worth billions of dollars, leaving experts scratching their heads.
One common way to value stocks is to measure the price-to-sales ratio. Even if Trump Media’s stock price crashes to just over $1, its price-to-sales ratio would still be much higher than Meta, Pinterest, Snap, Reddit and even Rumble, according to Renaissance Capital’s Matthew Kennedy. It’s called deaf.
Billionaire Barry Diller, chairman of IAC, owner of Expedia and People Magazine, even told CNBC that Trump Media is a “fraud” and that the people who buy it are “drugs.”
Trump Media spokeswoman Shannon Devine recently denounced the criticism, saying, “Now that Truth Social is a publicly traded company and continues to refuse to suppress political expression, fervent Trump haters and left-wing rebels are… It’s not surprising that people blow gaskets.” ”
Trump Media’s stock price has fallen recently, but it’s still up more than 74% year-over-year, factoring in profits from the merged blank check company.
