Staff Report
Following a highly anticipated debut in the stock market, Donald Trump’s venture into social media faced a harsh reality as his company, Trump Media & Technology Group, disclosed significant financial losses on Monday. The revelation of nearly $58.2 million in losses for the year 2023 sent the company’s stock plummeting by over 21%, marking a stark downturn from the profit reported in the previous year.
Despite generating $4.1 million in revenue for 2023, a notable increase from the previous year’s $1.5 million, the company’s financial performance fell short of expectations. Trump Media’s market debut, facilitated by a merger with Digital World Acquisition Corp., initially garnered excitement, with shares soaring in the first days of trading, reaching heights above $79. However, the subsequent volatility in the market saw the stock retreat closer to its initial offering price of $49.95, closing at $48.66 after Monday’s sell-off.
Analysts drew parallels between the market reaction to Trump Media and the meme stock phenomenon that propelled struggling companies like GameStop and AMC Entertainment to unprecedented levels of valuation in 2021. The broader meme stock category also experienced declines on Monday, with GameStop and AMC both seeing decreases in their share prices.
Trump’s foray into social media had been viewed as a potential financial boon amid his ongoing legal and financial challenges. While the company’s move to go public held the promise of substantial gains for the former president, there has yet to be a tangible payout. The provision preventing insiders, including Trump, from selling their shares for six months following the market debut remains unchanged. However, speculation abounds regarding the possibility of the board waiving this provision to allow Trump to sell shares, potentially to offset his legal expenses.
