The Trump Media & Technology Group, symbolized by the ticker DJT, has experienced a significant drop in value on Wall Street following the company’s filing with the U.S. Securities and Exchange Commission. This filing opened the door for the potential sale of millions of shares, causing a rapid decline in the company’s stock price. Former President Donald Trump, who holds a 57% ownership stake in the company, remains subjected to a lockup agreement that prevents him from selling his shares for several more months. Additionally, other key figures within the company, such as CEO Devin Nunes and Trump Jr., are also bound by the lockup agreement.
The company’s stock plunge has resulted in substantial losses for shareholders, with $7.2 billion being wiped off the company’s overall value since its initial high on March 26. Despite the significant decline, Trump Media continues to attract retail investors, with approximately 200,000 new investors entering the market in recent weeks. The stock’s volatile performance has drawn comparisons to other speculative investments, like meme stocks, with some investors showing optimism for a potential recovery while others take advantage of the lower share prices to increase their holdings.
Furthermore, Trump, who heavily relies on his social media platform Truth Social, with 7 million followers on the app, uses the platform to voice his opinions and critique his critics. The company’s financial performance has faced scrutiny, with last year’s loss of $58 million on revenue of $4.1 million raising concerns about the company’s long-term sustainability. Despite the challenges faced by Trump Media & Technology Group, the company continues to attract attention from both investors and the public due to its ties to the former president and its unique market dynamics.