Trump Media and Technology Group Corp. (NASDAQ: DJT) saw its shares fall by more than 7% today after the company refiled a Form S-3 that would allow President Donald Trump’s revocable trust to sell his entire stake in the company — more than 114 million shares.
Trump Media is the parent company of the president’s fledgling social media platform, Truth Social. The president’s majority stake in the company represents roughly half of his entire net worth.
In response to the sell-off, the company released a statement, in pure Trumpian form, blaming the media:
“Legacy media outlets are spreading a fake story suggesting that a TMTG filing today is paving the way for the Trump trust to sell its shares in TMTG. To be clear, these shares were already registered last June on an S-1 form, and today TMTG submitted a routine filing that re-registers them on an S-3 form in order to keep the Company’s filings effective. In fact, there currently is no open window for any affiliate to sell shares.”
Trump Media’s Roller Coaster Year
Trump Media stock has fallen by over 40% this year after surging more than 300% in less than a month in the lead-up to the 2024 presidential election.
With earnings per share at -$3.97, the company’s stock continues to trade without meaningful fundamentals to support its valuation. In 2024, Trump Media reported a mere $3.6 million in revenue — down by 12% from 2023 — and a net loss of over $400 million.
A Vehicle More Than a Business?
Trump Media has moved to expand into fintech, launching its Truth.Fi brand in partnership with Charles Schwab (NYSE: SCHW) — backed by an initial $250 million investment.
But its primary business, Truth Social, is a marginal player in the social media industry. It has roughly 1 million active monthly users — approximately 1% of the user base of X, formerly known as Twitter. Despite this modest reach, Trump Media has a market cap of more than $4 billion.
According to its annual report, Trump Media states that its “management and board does not rely on, and does not anticipate relying on, any particular key performance metric to make business or operating decisions.”
Despite being inseparable from the Trump brand, Trump Media — a whistleblower alleges — has outsourced much of its labor to cheaper foreign contractors rather than hiring Americans.
Globely News covers the game changers transforming the worlds of business, sports, politics, and technology. From AI and electric vehicles to the rise of China and the NFL's next stars, we've got you covered.