- The company’s shares fell at the open to $59 and fell below $50 on Monday.
- That gave the former president a theoretical loss of $1 billion.
- Critics have called it a ‘meme’ stock whose value dwarfs its earnings.
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Donald Trump on Monday experienced a staggering $1 billion paper loss on his Trump media holdings, after a filing revealed he lost $58 million last year.
Trump Media stock was trading at $48 per share Tuesday morning, a 32 percent drop from its price five days ago.
It fell 21 percent in a single trading day on Monday, as investors processed new details of the company’s financials amid rumors that it is the latest “meme” stock to capture market interest.
Trump still had a multimillion-dollar stake in the company. But at current prices, his value was still 1,500 times his income, which amounted to just $4 million last year.
Its latest filing also included a warning from an auditor that its “operating losses raise substantial doubts about its ability to continue as a going concern.” CNBC reported.
The company’s former representative and CEO, Devin Nunes, who owns 115,000 shares in the company worth $5.6 million as of Tuesday morning, spoke highly of the company in a statement on Monday.
‘We are excited to operate as a public company and have assured access to the capital markets. As we close 2023 financials related to the merger, Truth Social today has no debt and has over $200 million in the bank, opening up numerous possibilities to expand and improve our platform. “We intend to make the most of these opportunities to make Truth Social the ultimate free speech platform for the American people.”
Former President Donald Trump’s stake in Trump Media is valued at more than $4 billion. But he is prevented from selling the shares of his within a six-month lock-up period.
Trump’s media company lost $58 million last year, according to a new media filing, as skeptics said the multibillion-dollar company had the hallmarks of a ‘meme’ stock.
The company earned $4.1 million in revenue by 2023, according to the new filing. This comes after Trump’s stock soared to an $8 billion valuation when he made his NASDAQ debut, even as watchdog groups warned it was a meme stock that raised ethical concerns.
The company was valued at around $7.5 billion on Monday morning following the report’s release, with share prices falling below $50 after peaking at nearly $75 last week.
The stock was trading at nearly $60 per share in early trading on Monday after the Easter holiday, then fell to a low of $53, down about 15 percent. It fell below $50 after noon and ended the day there.
This came after a weekend in which Trump was busy posting on Truth Social more than 70 times, from one post wishing his political enemies a “happy Easter” to others attacking the judge in his New York fraud trial. York and the daughter of the judge who presided over the Stormy Daniels case.
The company began trading last week under the symbol DJT (Trump’s initials) after its merger with Digital World Acquisition Corp.
Trump Media shares have fallen about 32 percent over the past five days and were trading below $50 as of Tuesday morning.
By contrast, Reddit, the technology company that went public days before Trump’s firm, had around $800 million in revenue.
Trump’s Truth Social platform received 277,000 visitors on Tuesday when it debuted. It had about 5 million monthly users in February, according to research firm Similarweb, compared to about 2 billion for TikTok.
Trump owns about 57 percent of the company, although he cannot sell shares for a period of six months unless the company’s board of directors, packed with Trump loyalists, votes to allow a sale.
Others who have signed “locking” agreements include former Trump adviser Dan Scavino, former Rep. Devin Nunes, who is the company’s CEO, Donald Trump, Jr., and former Pentagon aide Kash Patel.
Board members who could greenlight sales include wrestling executive Linda McMahon, Patel and former U.S. Trade Representative Robert Lighthizer, although any move could expose them to lawsuits if they are found to be unavailable. acting in the interests of shareholders.
Trump’s still-massive bet comes as he faces continued financial pressures amid his four criminal trials. A New York appeals court reduced his court award to $175 in his fraud trial and gave her 10 days to pay the amount pending his appeal or obtain bail. The deadline arrives this week.