We have some breaking news about Trump Media, the publicly traded media company founded by former President Donald Trump. It seems that the stock is taking a nosedive, and financial experts are sounding the alarm bells.
Just recently, Trump Media announced that it would be putting more than 20 million shares up for sale. This decision came after news broke that the company is bleeding money. Forbes Senior Editor Dan Alexander appeared on CNN’s “Out Front” to discuss the situation, stating that the company’s fundamentals indicate that it’s poised to go down even further.
The stock had a strong start on March 26, but it has since plummeted. Last week alone, it dropped a staggering 21%, and on Monday, it fell another 18.4%. To make matters worse, the parent company of Truth Social, one of Trump Media’s platforms, filed a request with the U.S. Securities and Exchange Commission to supply an additional 21.5 million shares to the market. This represents a significant increase of more than 15% in available stock for the public.
According to a CBS News report, these developments have led to a total loss of $7.2 billion in value for Trump Media. In fact, the company itself has acknowledged its vulnerability to bankruptcy in its filing with the SEC.
Financial experts, including Dan Alexander, predict that the stock could fall by another 90% before any sense can be made of the company’s metrics. This is bad news for those who have invested in Trump’s stock, as they stand to lose a substantial amount of money. Alexander argues that the company was primarily set up to benefit Trump and Wall Street insiders who were able to purchase shares at discounted rates. Meanwhile, retail shareholders, those who invested large sums into the company, may end up empty-handed.
This situation serves as a reminder that investing in stocks can be a risky endeavor. It’s crucial to carefully analyze a company’s fundamentals and financial health before making any investment decisions. As for Trump Media, only time will tell how this story unfolds.
We will keep you updated with the facts, on Fan Reviews News.
