In a shocking turn of events, Donald Trump's DJT stock has plummeted just days after going public. The once highly anticipated initial public offering has left investors reeling as the value of the stock continues to drop at an alarming rate.
Many analysts attribute this sudden decline to the controversies surrounding Trump's presidency and his handling of various issues, including the ongoing COVID-19 pandemic and political unrest in the United States. Additionally, Trump's erratic behavior and inflammatory statements have further eroded investor confidence in his ability to lead effectively.
The drop comes after Trump Media & Technology Group reported it had lost nearly $60m (£48m) last year while only bringing in around $4m in revenue.
The price plunge caused the former president's net worth to shrink by $1bn, according to Bloomberg.
Shares had surged last week, giving the company an $11bn valuation.
Trump, who owns 78.5 million shares in Trump Media, about 57% of all outstanding shares, accordingly had his stake in the social media venture slide from its peak of $6.25 billion to Monday’s $3.86 billion.
For one thing, TMTG, which owns the conservative Twitter copycat Truth Social, makes basically nothing. According to a new financial filing from the company released on Monday, its total revenue was $4.1 million in 2023. Extrapolate that out, and the stock is trading at something like 2,000 times the company's annual revenue. That is, um, high. Apple, for example, trades at about seven times its total revenue. And given TMTG's paltry revenue, it actually lost $58 million last year.
Trump's company says it has bigger plans ahead, such as growing Truth Social and developing "one or more additional cutting-edge products and/or services" to complement Truth, including some sort of video-streaming situation that "provides a 'home' for cancelled content creators." What exactly this might look like, or how many people would flock to it, isn't clear.
The stock came under pressure Monday after the company revealed new details about its financials in a filing with the Securities and Exchange Commission. Trump Media lost $58.2 million last year, compared with $50.5 million the year before. Meanwhile, annual revenue amounted to $4.1 million, up from $1.5 million.
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