Certainly! The heading translates to: "Trump Media on a downward spiral: DJT shares experience dramatic loss in value
- TMTG stocks fall by over 10%, marking the sixth consecutive day of losses.
- The market capitalization of Trump Media drops dramatically as financial challenges persist.
Eulerpool News·
The stock of the Trump Media & Technology Group (TMTG) experienced a significant decline of over ten percent on Monday, reaching its lowest point since its stock market debut six months ago. The stock, traded under the ticker DJT, dropped by 10.3 percent and closed at USD 12.15 per share. This marks the sixth consecutive day of losses for the company, which has reportedly fallen by 17 percent since Thursday, according to Reuters.
Former Congressman Adam Kinzinger, a frequent critic of Trump, commented on the stock's plunge on Twitter with the words “More winning” along with a photo of Monday’s closing price.
Since an initial hype in March, the Trump Media & Technology Group has lost over 80 percent of its value. Back then, the market capitalization reached an impressive USD 9.5 billion following a SPAC deal with Digital World Acquisition Corp. Currently, the company’s market valuation stands at around USD 2.4 billion, as reported by CNBC.
On Thursday, the lockup period for Trump Media ended, allowing major investors and the former president to sell their shares or use them as collateral for loans. Donald Trump, who holds about 60 percent of the company’s shares, has repeatedly stated that he has no intentions to sell. His shares were still worth about USD 1.4 billion on Monday.
On Friday, the first trading day after the lockup period ended, more than 22 million shares changed hands, a notable increase from the 14 million shares traded on Thursday.
Despite Trump’s announcement to hold his shares, the stock remains highly volatile. It has often been considered a "meme" stock in the past and has shown significant fluctuations since its market introduction. A brief surge in price occurred after an assassination attempt on Trump in July, but the trend has been downward since then.
The financial challenges of the company are also reflected in its current business figures. For the quarter ending June 30, TMTG reported a net loss of over USD 16 million and quarterly revenue of only USD 836,900, which represents a 30 percent decrease compared to the same quarter last year.
Trump Media operates the platform Truth Social, which is advertised as a "safe haven for free speech" but primarily serves as a mouthpiece for Trump’s thoughts and opinions. The number of active users on the platform remains unclear. Modern Financial Markets Data
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