Shares of Trump Media Technology Group (DJT) fell more than 1% in premarket trading on Tuesday, extending a Monday afternoon selloff. The selloff came in the wake of former President Donald Trump’s return to “X,” the platform formerly known as Twitter, and his highly anticipated conversation with Elon Musk.
This is the first time President Trump has posted to his X account since August 24, 2023.
Shares of Truth Social, the parent company of Trump’s social media platform, fell about 5% to close near $25.
DJT reported second-quarter results on Friday, revealing a net loss of $16.4 million, about half of which was due to expenses related to its SPAC transaction. The company also reported revenue of just under $837,000 for the quarter ended June 30, down 30% from the same period a year ago.
In an updated regulatory filing in April, Trump Media reported revenue of just over $4 million and a net loss of nearly $60 million for the fiscal year ended Dec. 31. The company warned that it expects losses to continue amid growing profitability issues.
DJT’s stock price has been fluctuating between highs and lows in recent months.
Stocks soared (and then fell) in June after incumbent President Joe Biden stumbled in the first 2024 presidential debate with President Trump. Biden dropped out of the race a month later.
Since Biden’s announcement, stocks have continued to come under downward pressure as Vice President Kamala Harris, the presumptive Democratic presidential nominee, is leading Trump in the latest opinion polls.
In May, Trump was found guilty on all 34 counts of falsifying business records with the intent to influence the 2016 presidential election. The verdict led to a 5% drop in stock prices the day after the conviction.
Trump Media went public on the Nasdaq after merging with special purpose company Digital World Acquisition Corporation.
The company’s shares have fallen about 50% since its IPO at the end of March.
Republican presidential candidate and former president Donald Trump arrives to speak at a campaign rally in Bozeman, Montana, Friday, Aug. 9, 2024. (Photo by Associated Press/Rick Bowmer) (AP)
Trump founded Truth Social after he was banned from major social media apps, including Facebook (META) and Twitter, following the attack on the Capitol on Jan. 6, 2021. Trump has since returned to those platforms.
Trump owns about 60% of DJT. Currently, at about $25 per share, Trump Media’s market capitalization is about $3.39 billion, making the former president’s stake worth about $2 billion. Shortly after the company went public, Trump’s stake was worth just over $4.5 billion.
The company’s stock price hit a milestone in late April, and President Trump secured an additional $1.2 billion in cash, but shareholders must abide by a six-month lockup period before they can sell or transfer their shares.
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Alexandra Canal is a senior reporter at Yahoo Finance. Follow her at Yahoo Finance. Translatorvisit me on LinkedIn or email me at alexandra.canal@yahoofinance.com.
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