Shares of Trump Media fell by 21% after the announcement of millions in losses

Shares of Donald Trump’s company, which owns Truth Social, fell by 21% after announcing a million-dollar loss and saying it would be difficult to meet its financial obligations in the future, Reuters reports.

We are talking about Trump Media & Technology Group, which lost more than $58 million in 2023. This led to a sharp drop in the stock less than a week after its debut on the Nasdaq stock exchange.

The company’s shares rose sharply on the first day of trading on March 26 and closed at almost $58 per share. Not least due to the enthusiasm of retail buyers, which may include a large number of Trump supporters. But the company’s announcement reversed this trend, and the shares fell by $13.30, or 21%, to $48.66.

Trump owns 78.75 million shares. Last week, the value of his stake would have been more than $6 billion, but now it is about $3.8 billion.

Trump is not allowed to sell or borrow against his shares for six months – and any move he makes to change this agreement will likely trigger an even bigger drop.

Even with the drop in shares, the social network’s market value is $6 billion, while Reddit’s market capitalization is $8 billion.