Trump Media & Technology Group, the parent company of Trump’s Truth Social platform, saw its share price drop to $48.66 by the end of trading Monday, falling $13.30 from its opening price of $59.83.
Trump Media had a strong stock market debut, reaching a share price of $79.38 on its first day of trading last month. The company merged with “blank check” company Digital World Acquisition Corp. (DWAC) last month, allowing Trump’s social media company to become publicly traded.
But its shares plunged after it reported a loss of $58 million last year in Monday filings with the Securities and Exchange Commission (SEC).
The company said Monday that it “expects to continue to incur operating losses and negative cash flows from operating activities for the foreseeable future, as it works to expand its user base, attracting more platform partners and advertisers.”
The company noted operations to expand its appeal, including testing video streaming, saying its “ability to become profitable and generate positive cash flow depends on TMTG’s success in growing its user base, platform partners, and advertisers.”
“Given these uncertainties, TMTG believes it is premature for TMTG to predict when it will attain profitability and positive cash flows from its operations,” it added.
The Hill’s Sylvan Lane digs deeper here.
