Trump media stocks plummet 21% following high-flying debut

Donald Trump’s media venture witnessed a sharp decline in its stock value, tumbling 21% on Monday after revealing substantial losses and forecasting financial challenges, Reuters reported.

Trump Media & Technology Group announced its loss to be $58 million, the opposite feelings of which were experienced by its investors after the merger deal was sealed.

The stock of the firm had enjoyed a bullish performance during its first debut on March 26, mainly backed by retail investors, such as supporters of Trump.

However, Monday’s shocking news led to a significant bearish trend in the share value. The stock had closed at around $58 a share, and then shouted, $13.30, or a drop of 21%, which was at $48.66.

Analyst Ross Benes opined that the dip was a result of overrating Truth Social with a no clear profit central path, and diminished investor thrill.

Trump’s substantial shareholding, approximately 78.75 million shares, could have reaped a lot from possible increase; however, the current selling-off is estimated to be about $3.8 billion.

However, the corporation is estimated to be worth more than $6 billion in the US market which is under threat from traditional social networking platforms like Twitter and Instagram.

Analyst Michael Ashley Schulman has stated that although the company was initially popular, it is lacking to become the number one on social media.

Similarly, short sellers capitalising on Trump Media over their missteps caught the opportunity to recoup their losses so they could take advantage of the stock’s fall.

The earnings, recently reported at $4.13 million in 2023, pale against the big guns within the industry such as Reddit making the financial challenges and uncertain future of the company to be even more conspicuous.