Shares of Trump Media and Technology Group (DJT) fell more than 1% in premarket trading Tuesday, extending a slide after a Monday afternoon drop. The selloff came after former President Donald Trump returned to X, the platform formerly known as Twitter, and announced plans to expand his social network. long awaited conversation With Elon Musk.
This was the first time Trump had posted on his X account since August 24, 2023.
Shares of Trump’s social media parent company, Truth Social, closed down about 5% to trade at around $25.
Friday, DJT Reported The second-quarter results revealed a net loss of $16.4 million, about half of which was related to expenses related to the company’s SPAC deal. The company also reported revenue of just under $837,000 for the quarter ended June 30, down 30% year over year.
In April, Updated organizational file Trump Media Inc. reported sales of more than $4 million, while net losses totaled about $60 million for the fiscal year ending Dec. 31. The company warned that it expects the losses to continue amid greater challenges to profitability.
DJT shares have had a turbulent performance in recent months, swinging between highs and lows.
In June, the company’s shares soared (and then fell) after current commander-in-chief Joe Biden stumbled in his first 2024 presidential debate with Trump. Biden dropped out of the race a month later.
Since Biden’s announcement, stocks have remained under pressure as Vice President Kamala Harris, the presumptive Democratic presidential nominee, has gained ground on Trump. In recent polls.
In May, Trump He was convicted. A US court has charged Microsoft with falsifying 34 business records in an effort to influence the 2016 presidential campaign – a ruling that sent the company’s shares down 5% the day after the conviction.
Trump Media became a public company on the Nasdaq after to merge With special purpose acquisition company Digital World Acquisition Corp.
The company’s shares have fallen about 50% since its IPO in late March.
Trump founded Truth Social after being kicked off major social media apps like Facebook (META) and Twitter in the wake of the Capitol riots on January 6, 2021. Trump has since been reinstated on those platforms.
Trump maintains nearly 60% share At its current level of around $25 a share, Trump Media Inc. boasts a market value of around $3.39 billion, giving the former president a stake worth around $2 billion. Immediately after the company went public, Trump’s stake was worth more than $4.5 billion.
In late April, the stock hit a turning point that secured Trump an additional $1.2 billion in cash. However, shareholders are still subject to a six-month lock-up period before they can sell or transfer shares.
Alexandra Channel She is a senior reporter at Yahoo Finance. You can follow her on X @Ali_Canal, LinkedIn, You can email her at alexandra.canal@yahoofinance.com.
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