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Trump Media shares plummet 21% days after listing

Days after going public, shares of Donald Trump’s social media company Trump Media plunged 21% on Monday (April 1) after losses last year were revealed.

Trump Media & Technology Group reported a loss of more than $58 million last year on revenue of just $4 million, according to its latest filing with the U.S. Securities and Exchange Commission (SEC).

That’s in stark contrast to when the company’s shares soared to nearly $58 a share on its March 26 debut, valuing the company at $11 billion even though it only had about $4 million in revenue last year.

The initial surge and excitement in the stock price is believed to have come from supporters of the former president, but this quickly ran out of steam.

Launched in February 2022, Truth Social is described on its website as “America’s big tent” social media platform that encourages open, free and honest global dialogue without discrimination based on political ideology.

After the company went public, the 45th U.S. president’s shares were worth approximately $4.88 billion. Subsequently, after the sell-off, it was valued at approximately $3.83 billion. He cannot sell or borrow any of his shares for six months.

Trump is rumored to have spoken to the world’s richest man, Elon Musk, to gauge his interest in acquiring Truth Social.

Donald Trump’s Difficulties on Social Media

The social media site’s announcement came after Trump encountered difficulties sharing his thoughts online, with major players in the market banning his accounts for a period of time.

After the attack on the U.S. Capitol in January 2021, Facebook and Instagram banned his accounts for two years.

Twitter permanently suspended his @realDonaldTrump account and his campaign’s official account, as well as the accounts of allies who posted on his behalf. When Elon Musk acquired Twitter (now X), he reinstated banned accounts.

Donald Trump now primarily shares his posts on his platform, Truth Social.

Featured Image: Photo by Tim Gouw on Unsplash

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