Trump Media stock falls more than 21% after $58 million loss for 2023
Less than a week after a flashy stock market debut, Donald Trump’s social media company on Monday disclosed that it lost nearly $58.2 million last year, sending its stock tumbling more than 21%.
Losses in 2023 for Trump Media & Technology Group — whose flagship product is Truth Social — mark a stark decline compared with the profit of $50.5 million that the former president’s company reported for 2022, according to a company filing with securities regulators.
Revenue for Trump Media came in at $4.1 million in 2023, the SEC filing shows, although that’s up from $1.5 million in 2022.
After merging with a blankcheque company called Digital World Acquisition Corp., Trump Media began trading March 26 on the Nasdaq stock market under ticker symbol DJT. And it’s been a volatile ride.
Trump Media’s shares soared in their first couple days of trading — surpassing $79 at one point — but have since fallen closer to their initial offering price of $49.95. The company’s stock closed at $48.66 after Monday’s sell-off.
Industry analysts have compared the fervour around Florida-based Trump Media to the meme stock craze, which notably boosted shares of struggling companies such as GameStop and the movie chain AMC Entertainment to exorbitant heights in 2021.
On Monday, shares for these so-called meme stocks slid as well, with GameStop and AMC down more than 4% and 15%, respectfully, at market close. And Reddit, another company that recently went public and has since been looped into meme stock frenzy comparisons, slumped nearly 7%.
Trump’s social media site had been seen as a financial lifeline for the presumptive Republican presidential nominee as he faces an onslaught of legal and financial challenges. In addition to four criminal cases, Trump faces a $454 million-plus civil fraud penalty after a New York state judge ruled that he and others at his company had schemed for years to dupe banks, insurers and others by inflating his wealth on financial statements.