Alexandra Canal
·Senior Reporter
Updated Tue, Aug 13, 2024,
Trump Media & Technology Group (DJT) stock fell over 1% in premarket trading on Tuesday, continuing its decline after dropping Monday afternoon. The sell-off followed former President Donald Trump's return to X, the platform formerly known as Twitter, and after his much-anticipated conversation with Elon Musk.
It was the first time Trump had posted on his X account since Aug. 24, 2023.
Shares of the parent company of Trump's social media platform, Truth Social, closed down around 5% to trade near $25.
On Friday, DJT reported second quarter results that revealed a net loss of $16.4 million, about half of which was tied to expenses related to the company's SPAC deal. The company also reported revenue of just under $837,000 for the quarter ending June 30, a 30% year-over-year drop.
In April, an updated regulatory filing showed Trump Media reported sales of just over $4 million as net losses reached nearly $60 million for the full year ending Dec. 31. The company warned it expects losses to continue amid greater profitability challenges.
Trump Media & Technology Group Corp. (DJT)
Shares of DJT have been on a bumpy ride in recent months, oscillating between highs and lows.
In June, the stock popped (then fell) after current commander in chief Joe Biden stumbled in his first presidential debate of 2024 with Trump. Biden dropped out of the race one month later.
Since Biden's announcement, shares have remained under pressure as vice president Kamala Harris, the presumed Democratic presidential nominee, tracks ahead of Trump in the latest polling.
In May, Trump was found guilty on all 34 counts of falsifying business records intended to influence the 2016 presidential campaign — a verdict that sent shares down 5% the day after the conviction.
Trump Media went public on the Nasdaq after merging with special purpose acquisition company Digital World Acquisition Corp.
Shares have fallen about 50% since the company's public debut at the end of March.
Republican presidential nominee former President Donald Trump arrives to speak at a campaign rally in Bozeman, Mont., Friday, Aug. 9, 2024. (AP Photo/Rick Bowmer) (ASSOCIATED PRESS)
Trump founded Truth Social after he was kicked off major social media apps like Facebook (META) and Twitter following the Jan. 6 Capitol riots in 2021. Trump has since been reinstated on those platforms.
Trump maintains a roughly 60% stake in DJT. At current levels of around $25 a share, Trump Media boasts a market cap of roughly $3.39 billion, giving the former president a stake worth around $2 billion. Right after the company's public debut, Trump's stake was worth just over $4.5 billion.
In late April, the stock hit a milestone that secured Trump an additional $1.2 billion in cash. Stakeholders, however, are still subject to a six-month lockup period before selling or transferring shares.
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Alexandra Canal is a Senior Reporter at Yahoo Finance. Follow her on X @allie_canal, LinkedIn, and email her at alexandra.canal@yahoofinance.com.
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