The stock price of Trump Media & Technology Group (DJT), the parent company of former President Donald Trump’s social media platform Truth Social, has been falling sharply since Trump. found guilty All were charged with 34 counts of falsifying business records with intent to influence the 2016 presidential campaign.
Stocks initially fell and then rose again in extended trading hours following Trump’s conviction late Thursday. But stocks finished Friday’s session solidly in the red, down about 5%.
President Trump, who is expected to appeal the ruling, will be sentenced on July 11 and faces up to four years in prison on each count.
Trump Media, the parent company of Truth Social, is listed on Nasdaq. absorption with Digital World Acquisition Corp., a special purpose acquisition company.
The stock price has fallen about 15% since the company went public in late March.
Trump founded Truth Social after being kicked off major social media apps such as Facebook and Twitter, the platform now known as X, following the Jan. 6, 2021, Capitol riots. Trump has since returned to these platforms, but the former president has remained almost exclusive. It was posted on his Truth Social account during the trial.
In April Updated regulatory filings Trump Media reported a net loss of nearly $60 million for the year ended Dec. 31, on revenue of just over $4 million. The company warned that it expects losses to continue amid larger profitability challenges.
The company last May reported First-quarter results showed a loss of $327 million, mostly related to costs associated with the SPAC transaction. The company said that as of April 29, more than 621,000 different shareholders owned shares of Trump Media, “the majority” of whom were retail investors.
Trump keeps roughly 60% stake From Truth Social. At Friday’s closing price of about $49 per share, Trump Media boasts a market capitalization of about $6.6 billion, giving the former president a stake worth about $4 billion. Shortly after the company went public, Trump’s stake was worth just over $4.5 billion.
In late April, the stock hit a milestone, securing an additional $1.2 billion for Trump. However, interested parties still have to go through a six-month lock-up period before selling or transferring their shares.
Alexandra Canal He is a senior reporter at Yahoo Finance. Follow her on her @allie_canal, linkedin, Email alexandra.canal@yahoofinance.com.
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