Shares of Trump Media & Technology Group (DJT) plunged 22% after the social media company reported a $58.2 million U.S. loss days after going public.
The company tied to former U.S. President Donald Trump that is positioned as a rival to X, formerly known as Twitter, also reported 2023 revenue of only $4 million U.S.
The stock of Trump Media closed at $48.66 U.S. per share, more than $30 U.S. below its high of $79.38 U.S. reached after going public a week ago through a reverse merger with a special purpose acquisition company (SPAC).
Despite the big selloff, Trump Media’s market capitalization is still more than $6 billion U.S.
However, former President Trump’s shares in Trump Media is now worth about $3.8 billion U.S., down $2.5 billion U.S. from a week ago when the company went public.
The former president owns 57.3% of Trump Media’s stock.
In a news release, Trump Media stressed that it has no debt and more than $200 million U.S. in cash on hand.
However, in a regulatory filing with the U.S. Securities and Exchange Commission (SEC), the company warned that its losses are likely to continue for the “foreseeable future.”
Truth Social, the social media platform operated by Trump Media, has about five million daily active users currently compared to 215 million on rival X.
