Donald Trump’s media company continues to face problems as its stock price has fallen faster than ever, despite receiving good news from the SEC earlier this week.
Trump Media & Technology Group, owner of the social media site Truth Social, ended trading Friday at $26.75 per share, just over half the $49 per share the company was trading at when the month began.
TMTG has plummeted since a New York jury found Trump guilty of falsifying business records in a scheme to illegally influence the 2016 election on May 30. Trump faces sentencing on July 11.
The former president’s shares are greatly affected by the fall, since his value of 114.7 million shares would lose $2.4 billion.
It comes in a week in which the SEC declared effective the company’s filing to resell certain shares and warrants, potentially netting it about $247 million in profits.
Donald Trump’s media company continues to face problems as its stock price has fallen faster than ever, despite receiving good news from the SEC earlier this week.
Trump Media & Technology Group, owner of the social media site Truth Social, ended trading Friday at $26.75 per share, just over half the $49 per share the company was trading at when the month began.
When TMTG made the announcement of the new shares on Tuesday, the share price fell 17 percent, before a further 15 percent drop on Friday.
The company only reported about $770,000 in revenue in the first quarter of 2024 with a net loss of $324.6 million.
The company said that now that its warrants are exercisable, it expects to be “well positioned” to pursue streaming TV, other platform improvements and potential mergers and acquisitions.
Trump Media said proceeds from the potential sale of these warrants would supplement more than $200 million in unrestricted cash it currently retains.
The company added that an additional $40 million of restricted cash on its balance sheet will become unrestricted as a result of the registration statement on Form S-1 becoming effective.
The stock, which trades under the ticker symbol ‘DJT,’ has been extraordinarily volatile since its debut in late March, joining the group of meme stocks that are prone to bouncing from highs to lows as investors with deep pockets try capture bullish momentum. swing at the right moment.
Trump’s net worth was $5 billion as of market close at 4 p.m. ET, making him the 1,438th richest person in the world, according to Forbes calculations.
Most of Trump’s fortune comes from his stake in Trump Media.
TMTG has fallen since a New York jury found Trump guilty of falsifying business records in a scheme to illegally influence the 2016 election on May 30. Trump faces sentencing on July 11
A jury of seven men and five women in Manhattan Criminal Court deliberated for nearly 10 hours before convicting the former president of 34 counts of falsifying business records on May 30.
It was the first time a former US president faced a criminal trial and the verdict could alter the 2024 White House race, marking a pivotal moment in US history.
The verdict comes after five weeks of dramatic evidence and 22 witnesses questioned on the stand.
The 34 charges Trump faces each carry a potential maximum sentence of up to four years in prison. The sentencing date is set for July 11 at 10 a.m. ET.
Prosecutors spoke of a plot by Trump to “corrupt” the 2016 election by hiding a $130,000 payment from his “fixer” Michael Cohen to porn star Stormy Daniels.
