Stock in Trump Media & Technology Group, the parent company of the Truth Social media platform, is rising despite signs activity on the network might be falling.
Trump Media shares were up 3.7% at $42.98 in early trading. The stock closed up 7.9% on Friday.
Former President Donald Trump’s nearly 115 million shares in the company were valued at around $4.8 billion at Friday’s closing price. That figure includes 36 million earnout shares Trump was set to receive after the stock price fulfilled the requirements of the award last week.
Trump is barred from selling Trump Media shares until a six-month lockup period expires. But he could seek a waiver from the company’s board, which includes one of his sons and several former members of his administration.
Trump Media’s revenue in 2023 was $4.1 million, and the company posted a net loss of $58.2 million, meaning the stock is hugely overvalued on most normal metrics. Its Truth Social platform is a niche player in social media compared with sites like Reddit RDDT or Meta Platforms Facebook.
In March, Truth Social had 21% fewer monthly active users than it did for the same month last year, according to estimates from traffic analytics site Similarweb.
Source: https://www.barrons.com/articles/djt-stock-trump-media-price-truth-social-2a62b356
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