Trump Media & Technology Group, the media business owned by former President Donald Trump, had a difficult start as a public company. Its shares closed at a new low on the Nasdaq exchange, falling by 12% to $40.59 on Friday. This marked the lowest level for the stock since its listing on March 26. Throughout the week, Trump Media shares dropped by more than 32%, resulting in a market value loss of approximately $4 billion for the company.
Despite this setback, Devin Nunes, CEO of Trump Media, expressed optimism about the company’s future and its ability to access capital markets as a public company. However, Wall Street analysts have raised concerns about its financial stability and compared it to “meme” stocks like GameStop.
In its first year as a public company, Trump Media revealed a loss of $58 million on revenue of $4.1 million for 2023. Its auditor warned about its ability to sustain operations in the long term due to its lack of profitability. However, Nunes emphasized that the current financial position does not preclude future growth and profitability for the company.
Trump Media’s merger with Digital World Acquisition Corp., which initiated its public listing, has been credited with improving its financial stability and growth potential. The company has no debt and over $200 million in cash reserves, which could be used to fund expansion or acquisitions in the future.
Donald Trump, who owns 57% of Trump Media shares, holds a stake valued at $3.3 billion, reflecting his continued involvement in the company’s success and potential for growth in years to come. Despite these challenges
