Shares of Trump Media & Technology Group (DJT) faced a significant decline on Monday following the release of federal regulatory filings revealing a loss of over $58 million for the company in 2023.
Trump Media & Technology Group, the parent company of Truth Social, reported a substantial loss of $58.19 million in 2023, despite an increase in revenue to $4.13 million from $1.47 million in 2022, as disclosed in U.S. Securities and Exchange Commission (SEC) filings.
The DJT stock, which commenced trading on the Nasdaq last week, plummeted by more than 21% to 48.66 amid intense trading activity on Monday. This decline marks a stark contrast to the surge in DJT stock on March 26, where it rose over 16% to 57.99, reaching a peak of 79.38 during intraday trading.
The surge in March followed the successful merger between Digital World Acquisition (DWAC) and Trump Media & Technology Group, leading to the formation of Trump Media & Technology Group under the DJT stock symbol. The merger, which had been delayed due to federal investigations, was finally approved by DWAC stockholders on Friday.
Despite the recent decline in DJT shares, the stock has witnessed a gain of over 7% since the conversion. Throughout 2024, DJT/DWAC has observed a remarkable surge of more than 200%.
Former President Donald Trump holds a substantial stake of nearly 60% in TMTG, valuing the company at over $4 billion based on the current price of Trump Media stock. Trump’s involvement in the company, coupled with his status as the leading Republican candidate for president, has contributed significantly to the stock’s performance this year.
However, the brand’s association with Trump also poses risks, as potential federal charges could impact its reputation and value, according to company filings. Nonetheless, Trump remains the chairman of TMTG, with several allies, including his son Donald Trump Jr., serving as board members.
Prior to the conversion to DJT and DJTWW, DWAC stock had surged by approximately 140% in 2024, according to analysis by MarketSurge.