Trump Media & Technology Group stock briefly fell below $30 per share on Friday, hitting another new low since its debut on the Nasdaq last month.
Trump Media stock was down more than 5% midday Friday, trading at $30.88 per share — a slight recovery from a new post-merger low of $29.57 earlier in the day. The dip brought the company’s market value down to about $4.2 billion, halving the more than $8 billion market capitalization it saw in its first trading week.
Trump Media, the company behind former President Donald Trump’s Truth Social, went public on the Nasdaq under the ticker DJT on March 26, after completing its merger with Digital World Acquisition Corp., a special purpose acquisition company, or SPAC. At the peak of its first trading week, shares of Trump Media traded at almost $80 apiece.
The stock began to nosedive after the company disclosed a loss from operations of almost $16 million in 2023, plus interest expense of $39.4 million, while bringing in just $4.1 million in revenue. That’s compared with a loss from operations of $23.2 million, plus interest expense of $2 million, on $1.5 million in revenue in 2022, according to the company’s Securities and Exchange Commission filings.
Trump Media revealed that it “lacks the financial resources it needs to sustain operations for a reasonable period of time,” raising “substantial doubt” as to its ability to continue operations. The company said in an SEC filing that it expects to continue incurring operating losses and negative cash flow “for the foreseeable future.”