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DJT Stock Drops. Trump's Stake in Truth Social Parent Is Falling in Value

Dow Jones04-02

Trump Media & Technology Group shares were falling early on Tuesday. The stock didn't look to be helped by news that Donald Trump has posted a bond in a civil fraud case, averting potential asset seizures.

Trump Media shares were down 2.59% at $47.40 in premarket trading.

The stock closed down 21% at $48.66 on Monday. That left it with a market capitalization of about $6.7 billion and wiped more than $1 billion from the value of Donald Trump's approximately 57% stake in the company, which houses the Truth Social social-media platform.

Trump is barred from selling Trump Media shares until a six-month lockup period expires, but the former president could seek a waiver from the company's board, which includes one of his sons and several former members of his administration.

Trump's potential need to sell shares was reduced on Monday night, after he secured a $175 million bond relating to a New York civil fraud case. The bond puts a $454 million judgment against Trump on hold while he appeals, and stops the potential seizure of his assets and real estate to satisfy the amount.

Trump Media's price-to-sales valuation is still far ahead of social-media peers such as Reddit and Facebook-parent Meta Platforms. The company's revenue came to $4.1 million for 2023 and it posted a net loss of $58.2 million.

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Comment2

  • $Trump Media & Technology(DJT)$  seems to me to be a great way to lose money. Highly recommend it if you have to much money and want to have less[Happy]  
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  • Bulla
    ·04-02
    This stock will pop high, not now but for a long run yes
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