Trump Media Stock Drops 8.27% After Reporting $327.6M Q1 Loss

21 May

Trump Media & Technology Group (DJT) stock fell 8.27% after reporting a $327.6 million Q1 loss, marking its first quarterly report as a public company. The company, which operates the social media network Truth Social, generated just $770,500 in revenue for the first quarter, with a net loss of $210.3 million in the first quarter of 2023. The company stated that it is more focused on developing new products as a young company like a streaming TV platform rather than quarterly revenue.

In addition to the Truth Social platform, TMTG plans to introduce new products like streaming platforms for Apple and Android devices, as well as a streaming app for TVs. The company has recently signed contracts with a data center and hardware provider as it progresses toward launching its streaming venture.

The company initially announced plans to go public in October 2021, planning to merge with special purpose acquisition company Digital World Acquisition Corp. After SEC investigations delayed those plans, the merger was completed in March 2024, paving the way for TMTG to debut on the Nasdaq under the stock ticker "DJT," Trump's initials.

TMTG's stock has been on a roller coaster of highs and lows in its first two months as a public company, with a peak on March 26 at $79.38 and a final session 16% higher at $57.99. The company reported a $58.2 million loss for fiscal 2023 and filed to issue millions of new shares, sending the stock down to $22.55 on April 16. However, shares rebounded after the company told regulators it believed "naked" short selling of its stock was impacting its price.