Trump Media & Technology Group (DJT) stock has significantly fallen following former President Donald Trump’s return to X, formerly known as Twitter, and after his much-anticipated conversation with Elon Musk.
DJT stock fell over 1% in premarket trading on Tuesday, continuing its decline after dropping Monday afternoon. Shares of the parent company of Trump’s social media platform, Truth Social, closed down around 5% to trade near $25.
Last Friday, the company 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.
The Monday night interview on X marked the first time Trump had posted to his account since August 24, 2023. He went on a hiatus from the app after receiving consistent backlash over the years for his volatile and unpredictable nature on the platform, even getting banned a few years back.
Meanwhile, shares of DJT have been fluctuating in recent months, oscillating between highs and lows. In June, the stock popped (then fell) after Trump’s first presidential debate with President Joe Biden, who dropped out of the race one month later.
Since Biden’s announcement, shares have remained under pressure as Vice President Kamala Harris, the new Democratic presidential nominee, is ahead of Trump in the latest polling.
Back 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. In another hit to the company in May, a day after Trump was found guilty on all 34 counts of falsifying business records intended to influence the 2016 presidential campaign, shares declined 5%.
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.
Trump maintains a roughly 60% stake in DJT. Currently, the former president’s stake in Trump Media is worth around $2 billion. Right after the company’s public debut, Trump’s stake was worth just over $4.5 billion.
