Shares in Trump Media & Technology Group (DJT) stock continued to fall at the start of the week, with losses reaching as high as 18% on Monday.
Trump Media Continues To Slide Amid Fears
This followed a turbulent week of trading when the parent company of the Truth Social platform lost over 20% in a single day.
While each DJT share was valued at over $66.22 in late March, they have now fallen to nearly $27. Analysts have suggested that the dropping price may be linked to the filing made by Truth Social to issue over 21 million shares following heavy financial losses.
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Trump Media only went public in March this year, following its merger with Digital World Acquisition Corp. The price has been extremely volatile since then, and that 20% drop last week came after Trump Media mentioned that it had greater risks because of its association with the ex-US president. Its full-year losses for 2023 ran to almost $60m.
The filing stated that 21.4 million shares are to be issued at a special price upon the exercise of warrants following the merger between the two companies. Donald Trump holds over 114 million shares in the company, but its filing stated:
TMTG expects to continue to incur operating losses and negative cash flows from operating activities for the foreseeable future.
The company is working to expand the platform’s user base and get more advertisers on board. Currently, Truth Social has around nine million users, and its success is believed to be largely dependent upon Trump’s personal reputation and popularity.
