Shares of Trump Media & Technology Group (NASDAQ:DJT), the parent company of former President Donald Trump’s social media platform Truth Social, have faced significant volatility following Trump’s conviction on all 34 counts of falsifying business records related to the 2016 presidential campaign.
Initially, shares fell and then rebounded during extended hours trading after the conviction. However, the stock has since dropped again, down about 7% in afternoon trading.
Trump founded Truth Social after being banned from major social media platforms like Facebook and Twitter, now known as X, following the January 6 Capitol riots in 2021. Although Trump has been reinstated on these platforms, he has primarily posted on his Truth Social account throughout the trial.
An updated regulatory filing in April showed that Trump Media reported sales just over $4 million, with net losses nearing $60 million for the year ending December 31. The company indicated that it expects continued losses due to ongoing profitability challenges.
In May, the company reported first-quarter results, revealing losses of $327 million, primarily due to expenses related to its SPAC deal. As of April 29, the company disclosed that 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 hit 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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