Trump Media stock plummets after big streaming service announcement: analysis
Trump Media & Technology Group stock took another tumble this Tuesday after it was announced that the company would be launching a new streaming platform.
The stock, which traders under ticker DJT, fell 14 percent after a press release went out announcing the streaming service would come to phones, tablets, and TV through the Truth Social app, Yahoo! Finance reported.
"The streaming content is expected to focus on live TV including news networks, religious channels, family-friendly content including films and documentaries; and other content that has been cancelled, is at risk of cancellation, or is being suppressed on other platforms and services," the press release stated.
ALSO READ: 15 worthless things Trump will give you for your money
Trump Media, which is the parent company of the Truth Social platform, went public on the Nasdaq after merging with Digital World Acquisition Corp last month. Since March, shares for the company tanked more than 60 percent.
Also read: 'Keep confessing': Trump appears to corroborate allegations in impromptu remarks
"Trump maintains a roughly 60% stake in Truth Social. As of Tuesday's closing price of $22.84 a share, Trump Media boasts a market cap of roughly $3.1 billion, giving the former president a stake worth around $1.85 billion. Right after the company's public debut, Trump's stake was worth just over $4.5 billion," Yahoo! Finance's report stated.
Trump launched Truth Social after he was banned from Twitter and Facebook in the wake the Jan. 6 Capitol riot.
A regulatory filing released this month showed Trump Media drew revenue of just over $4 million and net losses of nearly $60 million in 2023 and prompted a stock market free fall.
"The filing also confirmed stakeholders are still subject to a six-month lockup period before selling or transferring shares. The only exception to the lockup period would be if the company's board votes to make a special dispensation. Although possible, experts told Yahoo Finance last month the attempt would likely result in multiple lawsuits on behalf of public shareholders."