On Tuesday, Trump Media and Technology Group saw a significant drop in shares, with a decline of almost 10%. This marks a total slide of nearly 40% since the company’s majority shareholder, former President Donald Trump, was convicted last month.
The Trump Media shares experienced a significant drop of 9.8% on Tuesday, with a closing price of $31.31 and a high trading volume of 7.52 million shares. The situation worsened during after-hours trading as the shares plummeted by over 17%, closing at $27.08.
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On Tuesday, the stock for the Truth Social platform, trading under the ticker “DJT,” closed with a market cap of around $5.5 billion. This date also marked the June 18 deadline, which could permit certain investors to exercise their stock warrants.
According to a filing with the Securities and Exchange Commission on April 15th, Trump Media has announced its intention to offer almost 21.5 million shares of common stock that can be issued upon the exercise of warrants.
According to sources, officials from Trump Media have been pointing fingers at short sellers and stock manipulators for the current downward spiral of their stocks. They have even gone as far as recommending legal action against those involved in any illegal short-selling activities.
In an amendment to its registration statement on Tuesday, the company cautioned investors that former President Trump would have the liberty to utilize alternative social media platforms aside from Truth Social. This comes after Trump gained a significant following on TikTok.
In an amended statement, TMTG expressed its concern over a potential disagreement with President Donald J. Trump regarding his obligation to use or make the first post on Truth Social. The company emphasized that such a disagreement could have a significant negative impact on its business and operations, leaving it with no practical solution.
In just six months, Trump Media’s stock has increased over 94%, as reported by Benzinga Pro. However, the company disclosed a net loss of $327.6 million and a total revenue of $770,500 in their May earnings report for the first quarter of this year.
On May 30, Trump faced conviction in New York for 34 counts of falsifying business documents in an effort to conceal his alleged affair with adult film actress Stormy Daniels. Despite denying the affair and pleading not guilty to all charges, he was found guilty.
