Welcome to Extreme Investor Network, where we bring you the latest updates and insights on the world of finance. Today, we’ll be diving into the rollercoaster ride that Trump Media & Technology Group (DJT) has been on, particularly after former President Donald Trump’s recent legal troubles.
Shares of DJT, the parent company of Truth Social, Trump’s social media platform, experienced a turbulent journey following Trump’s conviction on all 34 counts of falsifying business records in an attempt to influence the 2016 presidential campaign. After initial fluctuations in extended hours trading, the stock has since taken a hit, dropping by about 6% shortly after the opening bell.
Despite the legal setbacks, Trump continues to be a major player in the company, maintaining a roughly 60% stake in Truth Social. As of the current trading levels of around $48 a share, Trump Media boasts a market cap of approximately $6.5 billion, with Trump’s stake valued at around $3.9 billion. However, this value has seen fluctuations since the company’s public debut.
In addition to financial performance, recent regulatory filings have highlighted the challenges faced by Trump Media. Sales of just over $4 million were reported, while net losses nearly reached $60 million by the end of December. The company warned of ongoing losses amid profitability challenges, with first-quarter results showing losses of $327 million, primarily driven by expenses related to its SPAC deal.
Despite the rocky road, stakeholders in Trump Media are still subject to a six-month lockup period before selling or transferring shares, with Trump securing an additional $1.2 billion in value during late April. The shareholder base, consisting of over 621,000 individuals, is predominantly made up of retail investors, showcasing the widespread interest in the company.
As we await Trump’s sentencing on July 11 and potential appeals, the future of Trump Media and Truth Social remains uncertain. Stay tuned to Extreme Investor Network for more updates on this developing story in the world of finance.
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