In this article, the stock price of Trump Media skyrocketed by over 12% during afternoon trading on Monday, continuing a remarkable surge that commenced mid-April. The DJT ticker was valued at more than $5 per share just before 1 p.m. ET. Notably, Trump Media owns Truth Social, an app frequently utilized by former President Donald Trump who is also the presumptive Republican presidential nominee this year and a majority stakeholder in the company. In fact, on Monday morning, Trump posted a message on Truth Social that read: “TRUTH SOCIAL IS THE REAL VOICE OF AMERICA!!!”
Trump Media’s initial public offering (IPO) took place on March 26 with an opening price of over $70 per share. However, in the subsequent weeks, stock prices plummeted to a low closing value of $22.80 on April 16. Since then, Trump Media shares have more than doubled in worth, causing billions of dollars to be added to both company valuation and Donald Trump’s ownership percentage without any significant improvement being reported regarding the firm’s financial results.
Earlier today (Monday), a report by the New York Times uncovered details relating to how shareholders could avoid having their stock shares loaned out for use in short selling, which is when investors bet on falling prices of securities they borrow from other parties rather than owning them directly themselves. At present, Trump Media holds approximately $200 million worth of cash reserves but last year’s social media operations recorded losses amounting to $58 million with revenue totaling just $4.1 million.
This is a developing story and further updates will be provided as they become available.
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