Trump Media & Technology Group, the parent company of the Truth Social platform, showed signs of stabilization in early trading on Friday following a notable decline earlier in the week. The stock, which experienced a sharp slide over the past few days, was up 1.2% in premarket trading, reaching $32.79. This uptick came after a 5.4% decrease on Thursday, contributing to an overall decline of around 20% in the current week.
At the closing price of $32.41 on Thursday, Trump Media’s market valuation stood at approximately $4.68 billion. Former U.S. President Donald Trump, who holds roughly 57% of the company’s shares, saw his stake valued at around $2.5 billion. However, Trump is subject to a six-month lockup period preventing him from selling his shares, although he could potentially seek a waiver from the company’s board, which includes individuals like one of his sons and several former members of his administration.
Despite the recent decline in stock value, Trump Media reported revenue of $4.1 million for the fiscal year 2023, coupled with a net loss of $58.2 million. The company received a $300 million cash infusion as part of its listing through a merger with a special-purpose acquisition vehicle (SPAC).
Operating the Truth Social platform, Trump Media has garnered attention as a niche social media platform, with approximately five million mobile and desktop visits in February according to Similarweb, a traffic analytics site.
The fluctuation in Trump Media’s stock value has drawn comparisons with other media and social media platforms. At its peak, Trump Media briefly exceeded the market capitalization of the New York Times, which closed Thursday with a valuation of $7.15 billion. Conversely, the decline in Trump Media’s value mirrors a similar trend observed with social media platform Reddit, whose valuation dropped to $5.44 billion from a high of $9.5 billion following its recent initial public offering.
Overall, while Trump Media’s recent performance has been turbulent, its position in the social media landscape remains intriguing, particularly given its association with a high-profile figure like Donald Trump.