The price of Trump Media shares experienced a significant drop of nearly 20% over the course of the week, closing at just $32.59 per share. This decline represents a drastic decrease from the initial public trading price of over $70, which saw the company’s market capitalization exceed $9.5 billion. However, as of the latest trading session, the market cap of Trump Media has plummeted to $4.45 billion, marking a substantial loss in value.
Trump Media’s ownership of the Truth Social app has not been immune to this downward trend, with shares falling by 47.4% in April alone. Former President Donald Trump, the largest shareholder in the company with a stake of nearly 60%, is currently facing a criminal trial for charges related to falsifying business records. The company’s unimpressive financial performance, including a net loss of $58 million last year, has attracted short sellers who anticipate further declines in its stock price. Despite high initial financing costs of up to 900% for short trades, these costs have since decreased to 200%, indicating a heightened level of market speculation surrounding Trump Media’s future prospects.
