Trump Media & Technology Group, the parent company of Truth Social, is reeling from a brutal nosedive in its stock value post-merger. Shares plunged a staggering 12% on Friday, hitting rock bottom since the company’s recent public offering.
This catastrophic drop obliterated nearly $2 billion from former President Donald Trump’s investment in the company within a mere week.
From an initial high of $79.38 on its Nasdaq debut under the ticker symbol “DJT” on March 26, Trump Media shares have spiraled down by a gut-wrenching 49%, closing at a dismal $40.49 on Friday.
Throughout the week, Trump Media’s shares hemorrhaged a third of their value, sending shockwaves through investors. Despite earlier gains, the company’s shares have now plunged by over 130% since the year began, painting a bleak picture of its financial stability.
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Donald Trump’s personal stake in the company has been gutted, dwindling to a mere $3.2 billion from $4.9 billion just a week ago.
In a grim revelation, Trump Media disclosed a staggering loss of $58 million last year, accompanied by a meager revenue of a paltry $4.1 million. These abysmal financial figures have set alarm bells ringing, with experts warning of an imminent implosion of the company’s valuation.
Renowned billionaire Barry Diller, chairman of Expedia and IAC, owner of People Magazine, minced no words in his scathing condemnation of Trump Media, branding it a “scam.” He ridiculed investors as “dopes” for backing a company that’s yet to generate any meaningful revenue.
Diller emphasized the absurdity of the situation by pointing out, “I mean, it’s ridiculous. The company has no revenue.”
In a desperate rebuttal, a Trump Media spokesperson lashed out at critics, accusing them of biased hostility towards the company. They vehemently defended Truth Social’s performance, despite the bleak financial outlook.
