Trump Media, the company founded by former President Donald Trump, saw its shares drop by as much as 15% in extended trading after Trump was found guilty on all 34 felony counts of falsifying business records in his criminal hush money trial. The stock, which trades under the ticker “DJT,” recovered slightly but remained down about 9% in the early evening. Trump, who owns 65% of the company’s shares, has been facing legal troubles related to his business dealings since leaving the presidency.
The company’s troubles come at a critical time for Trump Media, which owns the Truth Social app and merged with shell company Digital World Acquisition Corp. in late March. The stock initially surged following the merger but then experienced a sharp decline in response to Trump’s legal issues. The company’s market capitalization is currently around $9 billion, largely driven by Trump’s personal brand and massive following. Despite this, Trump Media reported a net loss of $327.6 million in the first quarter, with revenue of less than $1 million.
The verdict against Trump raises questions about the future of Trump Media and its flagship product, Truth Social. While the app was initially met with enthusiasm from Trump supporters and conservative users looking for an alternative to mainstream social media platforms, the company’s financial losses and Trump’s legal troubles have cast a shadow over its prospects. Some analysts are now questioning whether Truth Social can survive without its main backer.
Trump’s legal entanglements have also raised concerns among investors, who are closely monitoring the company’s performance in the wake of the guilty verdict. The sharp decline in Trump Media’s stock price reflects the uncertainty surrounding the company’s future and its ability to attract users and advertisers in a crowded social media market. Trump’s personal brand, which has been a key driver of the company’s value, may be tarnished by the criminal charges against him.
Despite these challenges, Trump Media is not the only company grappling with legal and financial issues in the wake of Trump’s presidency. Several other companies associated with Trump, including his family business and the Trump Organization, have also faced legal scrutiny and financial setbacks. The guilty verdict against Trump could have broader implications for the Trump brand and its business ventures, as investors and consumers alike reassess their support for the former president and his affiliated companies.
As Trump Media seeks to navigate the fallout from the guilty verdict and chart a path forward, the company’s leadership will face tough decisions about how to rebuild trust with investors and regain momentum in a highly competitive market. The future of Truth Social, which was once touted as a potential rival to mainstream social media giants, remains uncertain as the company grapples with legal challenges and financial losses. Ultimately, Trump Media’s ability to weather the storm and emerge from this crisis will depend on its ability to adapt to changing market conditions and rebuild its reputation in the eyes of investors and consumers alike.
