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CNN
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Investors in Trump Media & Technology Group stock are giving up.
TMTG Shares (Djt) fell 14% on Tuesday afterward It closed down 18% on Monday. Pushing the stock lower on Tuesday: The company's flagship product, Truth Social, Announced a major expansion of live streamingIt is a very expensive business that giant media companies like Disney work in Strive to make a profit.
TMTG stock, majority owned by former President Donald Trump, has fallen more than 70% from its all-time high set on March 26, the day after it merged with a blank-check buyout company to go public. Although the company is still worth billions of dollars, it is struggling to make money and is desperate for cash. Experts warned investors Caution should be exercised if they choose to trade the stock, because the company does not have the fundamentals to support its high valuation.
Trump media Lost $58 million in 2023 and generated revenue of only $4.1 million. So, on Monday, it announced that it would sell an additional 21.5 million shares to the public to raise money — even though that would dilute the value for existing shareholders.
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The live streaming initiative hasn't given investors any reason to get excited about the company. Truth Social said it has spent the past six months testing its web, iPhone and iPad apps for live TV, and hopes to launch a content delivery network to support streaming apps for phones, tablets – and eventually smart TVs.
Truth Social suggested its streaming network could host live news, religious programming, family-friendly shows, films and documentaries that have been “canceled, at risk of cancellation, or being blocked on other platforms and services.”
“With our live streaming content, we aim to provide a permanent home for high-quality news and entertainment that faces discrimination from other channels and content delivery services,” Devin Nunes, CEO of TMTG and a former Republican congressman from California, said in a statement. “There's a lot of great content that simply can't find an audience for unfair reasons, and we want to let these creators know that they'll soon have a guaranteed platform where they won't get cancelled.”
Truth Social's latest campaign sounds similar to Elon Musk's X, which claims to be the streaming platform that best defends free speech. But X has hundreds of millions of active users — hundreds of times Truth Social's audience — and is still struggling to attract advertisers after Musk reshaped the business, allowing hate speech and conspiracy theories to spread on the platform.
Trump's association with the brand appears to be the main reason behind its high valuation. This helped in converting the shares into Meme stock That is, the company does not trade on its fundamentals as much as it trades on emotional responses.
Trump added billions of dollars to his net worth after TMTG merged with the blank check company in late March. But the value of its shares has fallen from its peak of $5.2 billion to about $1.8 billion. Trump's net worth has nearly declined $300 million on Tuesday from the stock's decline.
“Devoted student. Bacon advocate. Beer scholar. Troublemaker. Falls down a lot. Typical coffee enthusiast.”