Trump Media stock falls more than 21 percent

FILE - The Truth Social account for former President Donald Trump is seen on a mobile device, Wednesday, March 20, 2024, in New York. On Monday, April 1, less than a week after a flashy stock market debut, Trump's social media company disclosed that it lost nearly $58.2 million in 2023. (AP Photo/John Minchillo, File)
FILE - The Truth Social account for former President Donald Trump is seen on a mobile device, Wednesday, March 20, 2024, in New York. On Monday, April 1, less than a week after a flashy stock market debut, Trump's social media company disclosed that it lost nearly $58.2 million in 2023. (AP Photo/John Minchillo, File)

NEW YORK (AP) -- Less than a week after a flashy stock market debut, Donald Trump's social media company Monday disclosed it lost nearly $58.2 million last year, sending its stock tumbling more than 21 percent.

Losses in 2023 for Trump Media & Technology Group -- whose flagship product is Truth Social -- mark a stark decline compared with the profit of $50.5 million the former president's company reported for 2022, according to a company filing with securities regulators.

Revenue for Trump Media came in at $4.1 million in 2023, the SEC filing shows, although that's up from $1.5 million in 2022.

After merging with a blank-check company called Digital World Acquisition Corp., Trump Media began trading March 26 on the Nasdaq stock market under ticker symbol DJT. And it's been a volatile ride.

Trump Media's shares soared in their first couple days of trading -- surpassing $79 at one point -- but have since fallen closer to their initial offering price of $49.95. The company's stock closed at $48.66 after Monday's sell-off, meaning a lot of early investors are taking a hit.

Industry analysts have compared the fervor around Florida-based Trump Media to the meme stock craze, which notably boosted shares of struggling companies such as GameStop and the movie chain AMC Entertainment to exorbitant heights in 2021.

On Monday, shares for these so-called meme stocks slid as well, with GameStop and AMC down more than 4 percent and 15 percent, respectfully, at market close. And Reddit, another company that recently went public and has since been looped into meme stock frenzy comparisons, slumped nearly 7 percent.

Trump's social media site had been seen as a potential financial lifeline for the presumptive Republican presidential nominee as he faces an unprecedented onslaught of legal and financial challenges.

  photo  Pedestrians walk past the Nasdaq building Tuesday, March 26, 2024, in New York. Trump Media, which runs the social media platform Truth Social, now takes Digital World's place on the Nasdaq stock exchange. (AP Photo/Frank Franklin II)
 
 
  photo  Pedestrians walk past the Nasdaq building Tuesday, March 26, 2024, in New York. Trump Media, which runs the social media platform Truth Social, now takes Digital World's place on the Nasdaq stock exchange. (AP Photo/Frank Franklin II)
 
 

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