Parent company stock of Truth Social hits record low after going public

The stock prices for Trump Media & Technology Group, the parent company of Donald Trump’s social media platform Truth Social, hit a new low on the first day of the Democratic National Convention. This news added to the already turbulent market for Trump Media stock (trading under ticker DJT), which has seen near-steady falling prices since mid-July.

This latest decline, with the stock closing at $22.24 on Monday, down 3.56% from the previous close, marks the lowest close since the company’s initial public offering in March. It’s worth noting that the last lowest closing price was $22.84 on April 16, coinciding with the second day of Trump’s New York criminal trial where he was found guilty of falsifying business records.

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Despite its splashy debut earlier this year, Trump Media has been facing challenges, especially in light of the company’s recent financial reports. In the second financial quarter, the company reported over $16 million in losses and less than $1 million in revenue. This, combined with the company’s struggles to compete against the Democrats’ new candidate Vice President Kamala Harris, has added to the company’s stock price woes.

Experts have drawn parallels between Trump Media’s stock and meme stocks, noting that price fluctuations are often driven by retail investors’ coordination and attention. The company, founded in 2021 following Trump’s ban from other social media platforms after the Jan. 6 riot at the U.S. Capitol, went public through a merger with shell company Digital World Acquisition Corp., a special purpose acquisition company (SPAC).

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However, despite the initial hype, Trump Media’s stock has been deemed overvalued by conventional Wall Street standards when compared to other social media companies. For example, the company reported a net loss of $327.6 million in the first quarter of 2024, with only $770,500 in revenue. These financial struggles have continued, with the company reporting more than $16 million in losses and less than $1 million in revenue in the second financial quarter.

While the future of Trump Media remains uncertain, these latest developments highlight the challenges the company faces in the competitive social media landscape. As the company navigates these obstacles, investors and analysts will be closely watching to see how the stock prices respond in the coming weeks and months. Stay tuned to Extreme Investor Network for more updates and insights on Trump Media and other key players in the finance world.