Welcome to Extreme Investor Network, where we bring you the latest news and insights on all things finance. Today, we are diving into the world of Trump Media & Technology Group (DJT), the parent company of former President Donald Trump’s social media platform Truth Social.
Despite facing legal troubles, shares of Trump Media & Technology Group saw a 6% spike early Friday after Trump was found guilty on all 34 counts of falsifying business records in an attempt to influence the 2016 presidential campaign. This news comes as Trump is set to be sentenced on July 11, potentially facing up to four years in prison on each count.
Trump Media made headlines when it went public on the Nasdaq after merging with Digital World Acquisition Corp, a special purpose acquisition company. Since its public debut in March, shares of the company have dropped by 10%.
Truth Social was founded by Trump after he was banned from major social media platforms like Facebook and Twitter following the Capitol riots in 2021. Despite being reinstated on these platforms, Trump has been actively using his Truth Social account, even throughout the trial.
Financially, Trump Media reported sales of $4 million with net losses nearing $60 million for the year ending December 31. The company anticipates continuing losses amidst profitability challenges. In the first quarter, the company reported losses of $327 million, primarily due to expenses related to the SPAC deal. With over 621,000 shareholders, the majority being retail investors, Trump maintains a 60% stake in Truth Social.
As of Thursday’s closing price, Trump Media’s market cap sits at around $7 billion, giving Trump a stake worth about $4.2 billion. In late April, Trump secured an additional $1.2 billion thanks to a stock milestone, though shareholders are subject to a six-month lockup period before selling or transferring shares.
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