Trump Media & Technology Group Corp., mostly owned by Donald Trump, lost a lot of money. People who first made the stock price go up are now selling it, so the company’s worth dropped by about $2.8 billion.
The stock fell by 37% since March 26, which is lower than it was when people agreed to merge it with Digital World Acquisition Corp.
(DWAC) on March 22. Trump’s own money also went down by about $1.6 billion to $2.9 billion. But he can’t sell any of his shares for six months.
Money and Value
Even though Trump Media only made $4.1 million last year, it’s still valued at almost $5 billion. This makes it hard and expensive for people to bet against the company.
Trump Media lost over $58 million in 2023, and when they said that, the stock price fell by 22%.
Trump Media’s worth is very different from other social media companies like Reddit Inc. and Snap Inc., which have a lot more users and money coming in.
Investor Feelings and Legal Problems
Some investors are buying Trump Media’s stock to help Trump maybe win the election in 2024, even though the company isn’t doing that well financially.
Trump Media doesn’t focus on normal things like how many active users they have. Trump has other problems too, like being sued and having to pay a lot of money. All of this makes investing in Trump Media tricky.
