Donald Trump’s social media company Trump Media & Technology Group saw its shares plummet by 21% after revealing substantial losses and concerns about meeting financial obligations, Reuters reports.
Despite a strong debut last week, the stock’s value dropped after revealing over $58 million in losses for 2023, leading to investor concerns about its financial viability. Trump’s personal stake in the company was initially valued at over $6 billion but has now dropped to about $3.8 billion due to the stock selloff. Despite its decline, the company still holds a market value of over $6 billion.
The company’s future remains uncertain, with management expressing doubts about meeting financial obligations and analysts doubting its potential to rival established social media platforms like Twitter and Instagram. Moreover, legal disputes with co-founders Wesley Moss and Andrew Litinsky further complicate matters, as both parties vie for ownership stakes in the company.
