Investors in Trump Media & Technology Group’s stock are finally, after two days of turmoil, seeing an uptick in their shares.
The stock TMTG (DJT) rebounded by 20% in early afternoon trading on Wednesday after tumbling precipitously earlier this week.
Shares closed more than 14% lower on Tuesday after the company’s premier product, Truth Social, announced a major expansion into streaming, a notoriously cost-intensive business in which media behemoths like Disney have struggled to turn a profit. It also fell 18% on Monday after the company took steps to sell millions of extra shares.
The company, which is majority-owned by former President Donald Trump, is down about 60% from the all-time high it set on March 26, the day after it merged with a blank-check acquisition company to go public.
The company’s market value as of Wednesday was just under $3.8 billion, well below its peak of $8 billion when the company began trading at nearly $70 a share.
There are many reasons why Trump Media shares have been so volatile, including the fact that the company is inextricably linked to the former president. His name recognition, politically polarizing nature and close association with the company have captured the attention of retail investors, professional traders and the news media, creating a volatile environment for the stock.
Although the company is still worth billions of dollars, it is struggling to make money and needs cash. Experts have warned investors to be careful if they choose to trade the stock, because the company doesn’t have the fundamentals to back up its sky-high valuation.
Trump Media lost $58 million in 2023 and made just $4.1 million in revenue.
Trump Media’s extreme peaks and troughs have caused wild swings in the net worth of the company’s largest shareholder and chairman: former President Donald Trump.
On just one particularly bad day, Trump’s net worth plunged by $1 billion.
Trump is currently in the midst of a criminal trial where he has been charged with 34 felony counts of falsifying business records for his alleged role in a hush money scheme before the 2016 election. Trump has pleaded not guilty.
More on the case here.
David Goldman and Matt Egan contributed to this report.
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