Trump Media & Technology Group made its debut on the Nasdaq exchange in late March under the ticker symbol “DJT.” Despite initial success, the company’s stock has experienced significant fluctuations. The stock surged to a high of $79.38, valuing the company at over $9 billion. However, it has since dropped by 54%, with Trump Media’s market capitalization falling to less than $5 billion.
The company’s main asset is the social media service Truth Social, which generated $4.1 million in revenue in 2023. Despite this revenue, Trump Media has reported mounting losses and its accountant has expressed doubts about its ability to continue as a going concern. The company has primarily attracted attention from supporters of former President Donald Trump and retail investors, rather than big institutional investors.
Ben Emons, a senior portfolio manager, noted that “DJT” has the makings of a meme stock due to the Trump news factor. In a statement to CBS MoneyWatch, a Trump Media spokesperson mentioned that the company sees numerous possibilities for expanding and enhancing Truth Social. Additionally, the company has no debt and over $200 million in cash.
Overall, Trump Media’s Nasdaq debut has been characterized by volatility and uncertainty, as the company navigates challenges in the stock market and works to establish itself as a player in the social media industry.
