Shares of Trump Media and Technology Group dropped over 5% on Monday after the company reported modest revenues and a net loss in its first full quarter as a public entity.
Donald Trump made his return to X early Monday ahead of an interview with X owner Elon Musk later in the day, raising questions about whether he would continue to prioritize Truth Social, Trump Media’s social media platform. However, a Trump campaign fundraising email late in the trading session clarified that his return to X would be temporary.
Since beginning trading in late March, Trump Media’s stock has experienced significant volatility, driven by Wall Street speculation about its future. The stock has lost half its value since mid-May and declined more than 40% following a brief uptick after the July 13 assassination attempt on Trump, the Republican presidential nominee.
This decline has resulted in substantial paper losses for Trump Media’s largest shareholder, Donald Trump himself. Despite this, the company’s market value stood at $4.72 billion at Monday’s close.
Trump has largely used Truth Social since its launch in February 2022. However, the company’s IPO prospectus warned investors of potential harm if Trump shifted his focus away from Truth Social. While Trump is contractually required to post on Truth Social before using other platforms, this does not apply to campaign-related content. Trump, a former frequent tweeter, last posted on X in August 2023.
In a campaign video posted Monday, Trump claimed, “They want to silence me because I will never let them silence you. They’re not coming after me. They’re coming after you.” Musk had reinstated Trump’s account in 2022 after it was banned by Twitter’s previous management following the January 6, 2021, Capitol riot.
Trump Media’s quarterly report, released late Friday, highlighted the launch of its streaming service, Truth+, and mentioned exploring growth opportunities through mergers and acquisitions. The company reported being debt-free with $344 million in cash and cash equivalents. CEO Devin Nunes, a former Republican House member, stated, “From the beginning, it was our intention to make Truth Social an impenetrable beachhead of free speech, and by taking extraordinary steps to minimize our reliance on Big Tech, that is exactly what we are doing.”
