The stock value of Donald Trump’s media company fell precipitously, plunging 21% on Monday following the disclosure of significant losses and the prediction of future financial difficulties, according to Reuters.
Investors felt differently about Trump Media & Technology Group when the merger agreement was finalized, despite the company declaring a $58 million loss.
On March 26, the company’s shares had a bullish performance, mostly due to the backing of individual investors, including Trump supporters.
But the startling revelation on Monday caused the share price to significantly trend lower. The stock plummeted to $48.66, down 21%, or $13.30, after closing at almost $58 per share.
According to analyst Ross Benes, the decline was caused by investors losing interest in Truth Social and overrating the company with no obvious central path for profit.
Although Trump’s huge shareholding—about 78.75 million shares—may have benefited greatly from a potential gain, the present selling-off is estimated to be worth roughly $3.8 billion.
Nonetheless, the company, which is valued at over $6 billion in the US market, faces competition from established social media sites like Instagram and Twitter.
According to analyst Michael Ashley Schulman, despite the company’s initial popularity, it lacks the necessary elements to rank first on social media.
