Investors in Trump Media & Technology Group’s stock have experienced a tumultuous two days, but are finally seeing an uptick in their shares. The stock TMTG (DJT) rebounded by 20% in early afternoon trading on Wednesday after taking a significant fall earlier in the week. Shares closed more than 14% lower on Tuesday after Truth Social announced a major expansion into streaming, which is a costly business. It also fell 18% on Monday when the company announced plans to sell additional shares.
The company, majority-owned by former President Donald Trump, is down about 60% from its all-time high set on March 26 after merging 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. Trump Media’s volatility can be attributed to its association with the former president, which has captured the attention of investors, traders, and the media.
Despite being worth billions, Trump Media has struggled to make money and requires additional cash. Experts warn investors to be cautious when trading the stock, as the company lacks solid fundamentals to support its high valuation. In 2023, Trump Media lost $58 million and only generated $4.1 million in revenue. The extreme fluctuations in the company’s stock have also impacted the net worth of its largest shareholder and chairman, Donald Trump, with his wealth decreasing by billions on bad days.
Donald Trump is currently facing a criminal trial with 34 felony charges related to falsifying business records in an alleged hush money scheme before the 2016 election. Trump has entered a plea of not guilty. The case surrounding Trump’s legal troubles continues to unfold.