DJT Stock Drops Again After Trump Conviction

Donald Trump

Shares of Trump Media & Technology Group (NASDAQ:DJT), the parent company of former President Donald Trump’s social media platform Truth Social, have experienced significant fluctuations following Trump’s conviction on all 34 counts of falsifying business records related to the 2016 presidential campaign.

Initially, shares dipped and then rebounded during extended hours trading after the conviction. However, the stock has since dropped again, falling approximately 6% shortly after the opening bell.

Trump, who is expected to appeal the verdict, will be sentenced on July 11 and faces up to four years in prison for each count.

Trump Media, the parent company of Truth Social, went public on the Nasdaq through a merger with special purpose acquisition company Digital World Acquisition Corp.

Since its public debut at the end of March, shares have declined by about 10%.

Trump launched Truth Social after being banned from major social media platforms such as Facebook (NASDAQ:META) and Twitter, now known as X, following the January 6 Capitol riots in 2021. Although Trump has been reinstated on these platforms, he primarily posted on his Truth Social account during the trial.

An updated regulatory filing in April revealed that Trump Media reported sales just over $4 million, with net losses nearing $60 million for the year ending December 31. The company anticipates continued losses due to ongoing profitability challenges.

In May, the company announced first-quarter results, showing losses of $327 million, largely due to expenses from the SPAC deal. As of April 29, over 621,000 shareholders owned stock in Trump Media, with the “vast majority” being retail investors.

Trump holds an approximate 60% stake in Truth Social. With current trading levels around $48 per share, Trump Media’s market cap is about $6.5 billion, giving Trump’s stake a value of roughly $3.9 billion. Following the company’s public debut, Trump’s stake was valued just over $4.5 billion.

In late April, the stock reached a milestone, securing Trump an additional $1.2 billion. Shareholders, however, remain subject to a six-month lockup period before they can sell or transfer shares.

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