Investors in Trump Media & Technology Group’s stock are selling off their shares. The company’s stock, majority-owned by former President Donald Trump, has dropped more than 70% from its all-time high set in March. Despite still being worth billions of dollars, the company is struggling financially and is in need of cash. Experts caution investors about trading the stock due to its lack of fundamental support for its high valuation.
Trump Media reported a loss of $58 million in 2023 with only $4.1 million in revenue. To raise cash, the company announced it would sell 21.5 million more shares to the public, further diluting the value for existing shareholders.
The company’s latest push into streaming with Truth Social did not excite investors. The streaming network aims to host live news, religious programming, and family-friendly content that may have been cancelled or suppressed on other platforms. CEO Devin Nunes stated that the streaming platform will provide a home for content that faces discrimination elsewhere.
Despite the association with Donald Trump, the primary reason for the company’s high valuation, Truth Social has struggled to attract a large audience. The company’s value has plummeted from billions to about $1.8 billion, causing Trump’s net worth to decrease by approximately $300 million due to the stock’s decline.
