Trump Media & Technology Group (DJT) shares fell 18% after news that the parent company of Donald Trump's social media platform Truth Social has filed to issue more than 21 million shares. It continued to decline on Tuesday.
Shares closed at $26.61 on Monday, extending last week's plunge, and fell more than 2% further in pre-market trading. The move highlights the volatility in Trump Media's stock price since it merged with Digital World Acquisition Corp. and went public in late March.
Last week, Trump Media suffered huge losses and faced “greater risks” related to the former president's relationship with the platform, the company's latest regulatory filings revealed. After that, the stock price plummeted more than 20% in one day.
Trump Media said in its latest filing that more than 21.4 million shares are available for issuance through the exercise of stock acquisition rights associated with its merger with Digital World, a special purpose acquisition company. Warrants allow the holder to purchase stock at a specific price and are often associated with SPAC transactions.
The company also said it has registered the resale of 146.1 million shares “by selling security holders.” More than 114 million are held by former President Donald Trump.
Last week, Trump media The company reported a net loss of nearly $60 million for the year ended Dec. 31 on revenue of just over $4 million. The company warned that it expects losses to continue as profitability challenges grow.
“TMTG has historically had operating losses and negative cash flows from operating activities,” the filing states.
“TMTG expects to continue to incur operating losses and negative cash flow from operating activities for some time as we strive to expand our user base and attract more platform partners and advertisers.”
Since its founding, Truth Social has accumulated approximately 9 million users. The company noted that its success relies heavily on Donald Trump's “reputation and popularity.”
Citing risks such as harassment of advertisers and criticism of Truth Social's moderation practices, the company said, “The focus of its offerings and President Trump's involvement make TMTG a popular social media platform. “They could be at greater risk.”
“If President Trump's popularity declines, TMTG's brand value may decline.”
After being banned from major social media apps such as Facebook (META) and Twitter (the platform now known as Established. Trump has since returned to those platforms.
The stock rose to $66.22 per share on March 27, but was trading just below $26 per share before the bell on Tuesday.
Ines Ferre is a senior business reporter at Yahoo Finance. Follow her on X @ines_ferre.
alexandra canal I'm a senior reporter at Yahoo Finance. Follow her on X @allie_canal, LinkedIn, and email her to
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