Trump Media's Stock Plummets Over 21%

Chloe Whisperwillow

Updated Tuesday, April 2, 2024 at 11:32 AM CDT

Trump Media's Stock Plummets Over 21%

Trump Media & Technology Group (TMTG), the parent company of former President Donald Trump's social media platform Truth Social, saw its stock value plunge by over 21% on Monday, with the closing stock price settling at $48.66. This downturn in the stock market slashed the company's market valuation to $6.65 billion and reduced Trump's stake from an initial value of over $4.5 billion to approximately $3.8 billion.

This decline comes as TMTG reported substantial net losses nearing $60 million for the fiscal year ending December 31, alongside sales of just over $4 million. The financial documents revealed that the company anticipates ongoing operating losses and negative cash flows as it aims to build its user base and attract advertising partners. Despite reaching around 9 million users since its launch, Truth Social's success is heavily dependent on Trump's personal brand, which has been mired in controversy.

TMTG's financial struggles are further compounded by regulatory filings indicating increased risks due to Trump's association, which could impact its ability to attract and retain advertisers—a primary source of revenue for the platform. The company has cautioned that a reduction in user engagement or the departure of key content creators could severely affect its appeal to advertisers and, consequently, its business outcomes.

Shareholders of Truth Social are subject to a six-month lockup period before they have the liberty to sell or transfer shares. However, following this period, Trump—who faces a $454 million fraud penalty and challenges in campaign fundraising—might consider liquidating part of his stake to raise funds. Legal experts warn that any premature waiving of the lockup could lead to multiple lawsuits from public shareholders.

TMTG was listed on the Nasdaq following a merger with Digital World Acquisition Corp., a move shareholders approved late last month. The platform, founded by Trump after being banned from mainstream social media platforms post-January 6 Capitol riots, positions itself as a haven for "cancelled content creators" promoting "honest global conversation" without political censorship.

Trump had previously predicted a stock market crash if Joe Biden were elected president in 2020. Yet, the stock market has demonstrated resilience contrary to this forecast. Since Biden's inauguration, the S&P 500 index has seen a 40% increase, compared to a 13% rise during the equivalent period in Trump's presidency. However, over the first three years of each term, Trump's presidency saw the stock market outperform Biden's by about 5 percentage points.

The performance of TMTG's stock and Truth Social's user engagement will serve as critical indicators of the platform's long-term viability. With the political and economic landscape continuing to wield influence over TMTG's future and the broader stock market. TMTG's growth is challenged by its reliance on Trump's personal brand and political fortunes, reflecting the complex interplay between politics, business, and the stock market.

Conservative Bias:

Once again, the liberal media and the radical left's relentless attacks on a true American patriot have manifested in the financial persecution of Trump Media & Technology Group. Despite the company's noble efforts to provide a sanctuary for free speech in an era where conservative voices are systematically silenced, the leftist propaganda machine has succeeded in tarnishing President Trump's personal brand and, by extension, the valuation of TMTG. The plummeting stock value is clearly a consequence of the socialist-leaning regulators and advertisers who are too spineless to stand up for liberty and too indoctrinated to see the value in a platform that champions the truth. This is nothing short of economic sabotage, orchestrated by those who want to see America's capitalist foundations crumble and who fear the power of a platform uncontrolled by the liberal elite.

Liberal Bias:

The catastrophic plummet of Trump Media & Technology Group's stock is a stark reminder of the chaos sown by the Trump administration and its continued grip on a segment of American society. This financial nosedive is a direct result of Trump's toxic brand and the myriad of legal troubles that follow him like a shadow. The market has spoken, and it's a resounding rejection of the dangerous rhetoric and divisive politics that Truth Social amplifies. It's clear that any enterprise associated with Trump is fated to struggle, as informed citizens and responsible advertisers refuse to support a platform that thrives on misinformation and serves as a breeding ground for the far-right's extremist agenda. The stock's decline is a beacon of hope, signaling that the majority of Americans are choosing to stand against the normalization of hate and bigotry that TMTG represents.

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