According to reports, the price of a share in the Trump Media company, traded under the ticket ‘DJT,’ has plummeted to $39.31 per share. This is a stark contrast to its early maximum value of around $80 a share. It’s worth noting that the share price is still higher than when it dipped to $22.84 on April 17, the lowest it had been since January 16.
Trump’s media company, known as the Trump Media and Technology Group, manages the Truth Social platform. This social media site, mainly used by Trump himself, allows him to make stream-of-consciousness posts called “Truths.” However, despite recent attempts to rally the stock price, experts believe that the current valuation makes little sense. Notably, the company generated a mere $4 million in revenues last year and faced a loss of $330 million in just the first three months of this year.
It has been speculated that investors may be inflating the stock’s value either for personal gain or to show political support for the former president. Interestingly, while Trump gained billions of dollars in wealth on paper when Trump Media went public, he faces difficulties in using this wealth to cover pressing matters, such as legal expenses.
Furthermore, the company is currently embroiled in legal drama, facing lawsuits between founders and fraud charges against the auditing company by the Securities and Exchange Commission. These legal complications have further contributed to the spiraling status of Trump’s media company.
Recent events, including Trump’s guilt in falsifying business records in his hush-money trial, have impacted the performance of the stock. It’s clear that the company and those associated with it are facing significant challenges.
We will continue to bring you updates on this ongoing story, on Fan Reviews News.
