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Truth Social shares collapse as Trump makes his X-comeback
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Truth Social shares collapse as Trump makes his X-comeback

Shares of Donald Trump’s social media company fell to their lowest price in months on Monday, just hours after the former president revived his long-dormant “X” account to promote his “interview” with Elon Musk.

Shares of Trump Media & Technology Group fell 6 percent to $25 a share on Monday, their lowest closing price since April.

The net worth of the former president, who owns about 65 percent of the company, fell by another $170 million due to falling stock prices, according to a study by ForbesThe share price of the company, which trades under the name DJT, has fluctuated regularly in recent months as the former president’s fortunes are tied to his election campaign, criminal proceedings and massive legal obligations.

Monday’s decline also followed the company’s recent earnings report with the Securities and Exchange Commission, which showed that Truth Social’s parent company would generate less than $1 million in revenue and a loss of over $16 million in the second fiscal quarter of 2024.

In announcing its quarterly SEC filing on Friday, the company said its net losses were largely due to legal expenses of more than $8 million following its highly anticipated merger in March, as well as another $3 million in costs related to a streaming service it plans to launch this year.

“With the launch of TV streaming in August 2024, the company believes it has laid the foundation for a key driver of long-term revenue and value,” the company said in a press release about the filing on Friday. “With its strong balance sheet and zero debt load, the company believes it has sufficient working capital to fund operations for the foreseeable future.”

Shares of the parent company of Donald Trump's Truth Social took a steep plunge on August 12 after Trump agreed to join rival platform X for an appearance with owner Elon Musk.
Shares of the parent company of Donald Trump’s Truth Social took a steep plunge on August 12 after Trump agreed to join rival platform X for an appearance with owner Elon Musk. (AP)

DJT stock is widely considered a “meme stock,” with shares driven by individual investors rather than other market factors, but it could also attract broader interest thanks to Trump’s campaign and potential election victory, as well as his attempts to enter the cryptocurrency sector.

When the platform officially launched two years ago, Trump said the company would “stand up to the tyranny of big tech.” Right-wing figures accused the platform of being too restrictive or of suppressing their views after users of other platforms were kicked off the platform for violating its terms of service related to disinformation, violence and harassment.

Truth Social has become his de facto campaign messaging site, where he can make headlines with his statements and reach an audience of more than four million people on the platform.

Trump Media began trading in March after completing a years-long plan to merge with a shell company, Digital World Acquisition Corp., that could take the company public.

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