Former President Donald Trump’s media company appears to be losing its sheen a week after its debut, with shares on Monday tumbling below its opening trading price, shaving more than $4 billion of market value from its peak.

The plunge in Trump Media & Technology Group’s shares, which debuted on March 25 under the ticker “DJT” after the former president’s initials, comes as it disclosed mounting losses in a regulatory filing. It also noted that its accountant had issued a warning that its losses “raise substantial doubt about its ability to continue as a going concern.”

Shares of Trump Media & Technology Group, whose primary asset is the Truth Social platform, tumbled $14.50, or 23%, to $47.46 in Monday afternoon trading. That’s below its opening price last Monday of $49.90 per share, and represents a 40% plunge from its high of $79.38 on March 26. 

To be sure, Trump Media continues to maintain a heady market capitalization for a business that’s in the red and booked just $4.1 million in revenue last year. Even after Monday’s stock plunge, the business is worth $6.7 billion, making it more valuable than companies like Bausch & Lomb, Alcoa Corp. or Harley-Davidson — all of which have annual revenue in the billions. 

Trump Media’s soaring valuation has prompted comparisons with so-called “meme” stocks like GameStop, which typically attract individual investors based on social media buzz, rather than the tried-and-true yardsticks relied on by institutional investors, such as profitability and revenue growth. Yet Truth Social has positioned itself as an alternative to more established tech giants such as Meta’s Facebook, which also endured losses in its early years. 

“GameStop was the meme stock of a lifetime, but Trump Media has put it to shame,” Michael Pachter, an analyst at Wedbush Securities, told the Associated Press last week. 

Trump Media & Technology Group on Monday disclosed more details about its finances. The company booked $4.1 million in revenue last year, compared with $1.5 million in the year-earlier period. It also posted a loss of $58 million in 2023, compared with a profit of $50 million in the prior year. 

Additionally, it noted that its accountant flagged that the company’s losses raise doubts about its ability to continue operating. Such a warning, however, reflects the company’s current situation; the company could grow its user base, revenue and reverse its losses, putting it on a more stable path. 



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