Shares of Donald Trump's social media company, Trump Media & Technology Group, plummeted by more than 20% on Monday, less than a week after it began trading publicly under the ticker DJT. The stock fell $13.30 to $48.66, marking a significant decline from its initial surge.
The drop followed the company's disclosure that it lost nearly $60m (£48m) last year while generating only around $4m in revenue. In a filing with the US Securities and Exchange Commission, Trump Media said it expects to continue incurring operating losses and negative cash flows for the foreseeable future. The company paid about $40m in interest expenses and $16m in operating losses in 2023.
The price plunge reduced former President Donald Trump's net worth by $1bn, according to Bloomberg. Trump holds a nearly 60% ownership stake in the company, but he is legally barred from selling his shares for six months unless the board grants a waiver.
Experts had warned the stock was bound to tumble, as its main product, Truth Social, loses users and burns cash. The initial price surge drew comparisons to pandemic-era 'meme stock' mania, driven by small-time investors showing support for Trump amid his legal troubles. However, estimates from Similarweb show Truth Social has roughly five million active monthly users, far fewer than rivals like X (formerly Twitter) and Facebook.
Truth Social launched in February 2022 after Trump was banned from major platforms following the US Capitol riot. Although his accounts have been reinstated, he continues to use Truth Social as his main outlet. The company has claimed about 8.9 million sign-ups but has declined to share commonly disclosed performance metrics.
