Trump Media & Technology Group stock plunged another 10% on Monday, hitting new lows as the shares continued their free fall from opening-week highs.
Shares of Trump Media, the company behind former President Donald Trump’s social media platform Truth Social, were trading at $36.33 late Monday afternoon — down more than $40 from a high of $79.38 per share on the stock’s opening day on the public markets. The fall has left the company’s market capitalization hovering around $5 billion, down from highs of more than $8 billion during its first trading week.
Trump Media stock recovered some ground late in the day to close down 8.4%, to $37.17 per share.
The company’s stock began its downward trajectory last week after it disclosed a loss from operations of almost $16 million in 2023, plus interest expense of $39.4 million, while bringing in just $4.1 million in revenue. That’s compared with a loss from operations of $23.2 million, plus interest expense of $2.0 million, on $1.5 million in revenue in 2022.
Trump Media reported in a Securities and Exchange Commission filing that it “lacks the financial resources it needs to sustain operations for a reasonable period of time,” raising “substantial doubt” as to its ability to continue operations. The company said it expects to continue incurring operating losses and negative cash flow “for the foreseeable future.”
Devin Nunes, the CEO of Trump Media and a former U.S. House member from California, said in an interview Sunday that the company is “well positioned” despite concerns over its profitability.
“Why are we well positioned? Because we have no debt,” Nunes said on Fox News. “We’re coming out of this with no debt, a platform that works really, really well that communicates to millions of people, and then we have $200 million in the bank.”
He did not say when he expects the company to be profitable.
Trump Media went public on the Nasdaq under the ticker DJT late last month, after completing its merger with Digital World Acquisition Corp., a special purpose acquisition company (SPAC).
Analysts said the company’s initial stock boom had little to do with its underlying business and more to do with support for Trump, lumping Trump Media in with so-called “meme stocks,” like GameStop, AMC, and Reddit.