Trump Media Group Shares Plummet After Truth Social Revenue Numbers Revealed

( — When the Trump Media & Technology Group went public on Monday, March 25, the market went wild all day, with prices surging and falling throughout the day but ending the day on a relatively high note. However, a new regulatory filing revealed net losses of more than $52 million with revenues of only $4 million last year. The information caused a plummet for the stocks, which trade under DJT, ending at about $48, down from its record high of $66.22.

Due to the stock’s extreme volatility and the way it is so tied to opinions and sentiments about former president Trump, analysts have been referring to it as a “meme stock”. Meme stocks are often ridiculed because they rise and fall on factors outside of normal financial factors, such as prospective profitability and revenue growth.

While Trump’s popularity with some stockholders could be seen as a positive, the filings by Trump media included a suggestion that the company might be subject to “greater risks” than other social media businesses, like being targeted for cyberattacks or harassment of their advertisers because of how controversial Trump can be.

Trump Media & Technology Group CEO Devin Nunes pointed out in a statement on Tuesday April 2 that Truth Social has no debt and over $200 million in the bank. However, the company’s filing included a warning for stockholders that the Trump Media & Technology Group is expecting to continue to have operating losses and negative cash flows while it continues efforts to expand its user base and attract more advertisers and platform partners.

Due to his extensive legal battles and the expenses and fines that have resulted from those, many are speculating that Trump is in desperate need of actual cash for immediate use, not the kind of money that exists in assets that cannot be liquidated. Trump is barred from selling any of his Trump Media stock for a six-month period following the March 25 opening, however, the former president has not made any public statements suggesting he is intending to divest himself of any stocks related to his social media platform, Truth Social.

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