Trump’s Truth Social Shares Fall 14% After Major Announcement

Trump Media & Technology Group’s stock TMTG (DJT) fell 14% on Tuesday after closing 18% lower Monday after the company’s flagship product, Truth Social, announced a major expansion into streaming, a cost-intensive business from which Disney and HBO have struggled to profit.

TMTG’s stock, which is majority owned by former President Donald Trump, is down more than 70% from its all-time high on March 26, the day it combined with a blank-check acquisition company to go public.

Although the corporation is still valued at billions of dollars, Wall Street insiders believe it is struggling to turn a profit.

Wall Street experts have cautioned investors from trading the stock since the company’s fundamentals do not support its exorbitant price.

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Trump Media lost $58 million in 2023 and generated only $4.1 million in income. So, on Monday, it stated that it would sell an additional 21.5 million shares to the public in order to earn cash, despite the fact that this would diminish the value for existing shareholders.

The streaming strategy did not provide investors with any cause to be optimistic about the company.

Truth Social said it spent the past six months testing its web, iPhone, and iPad apps for live TV streaming, and it intends to establish a content delivery network to stand-up streaming apps for phones, tablets, and eventually smart TVs.

Truth Social said its streaming network could host live news, religious programming and family-friendly shows, movies and documentaries that “has been cancelled, is at risk of cancellation, or is being suppressed on other platforms and services.”

“With our streaming content, we aim to provide a permanent home for high-quality news and entertainment that face discrimination by other channels and content delivery services,” said TMTG CEO Devin Nunes, a former Republican congressman for California in a statement.

“There is a lot of great content that simply can’t find an audience for unjust reasons, and we want to let these creators know they’ll soon have a guaranteed platform where they won’t be cancelled.”

Trump’s net worth increased by billions of dollars with the merging of TMTG and the blank cheque company in late March. However, his stock has dropped from a high of $5.2 billion to around $1.8 billion. The stock’s collapse reduced Trump’s net worth by almost $300 million on Tuesday.

A Gentle Reminder: Every obstacle is a stepping stone, every morning; a chance to go again, and those little steps take you closer to your dream.

Nnamdi Okoli