Trump Media stock tanks 16 % on move to issue millions of shares

Trump Media stock tanks 16 % on move to issue millions of shares

Trump Media & Technology Group (DJT) stock slid as much as 16% on Monday after the parent company of Donald Trump’s social media platform Truth Social filed to issue more than 21 million shares.

Monday’s stock slide was an extension of last week’s sell-off and highlighted shares’ volatility since Trump Media went public after merging with Digital World Acquisition Corp in late March.

Last week shares tanked more than 20% in one day after an updated regulatory filing from the company showed Trump Media taking on heavy losses and facing “greater risks” associated with the former president’s ties to the platform.

Trump Media said in its latest filing that more than 21.4 million shares are issuable upon the exercise of warrants stemming from the merger with special purpose acquisition company Digital World. Warrants allow holders to buy shares at a specific price and are often tied to SPAC deals.

The company also said it is registering the resale of 146.1 million shares “by the Selling Securityholders”. More than 114 million are held by President Donald J. Trump.

Trump Media last week reported sales of just over $4 million as net losses reached nearly $60 million for the full year ending Dec. 31. The company warned it expects losses to continue amid greater profitability challenges.

“TMTG has historically incurred operating losses and negative cash flows from operating activities,” the filing read.

“TMTG expects to continue to incur operating losses and negative cash flows from operating activities for the foreseeable future, as it works to expand its user base, attracting more platform partners and advertisers.”

Truth Social has accumulated about 9 million users since its inception. The company notes its success largely depends on the “reputation and popularity” of former President Donald Trump.

“TMTG may be subject to greater risks than typical social media platforms because of the focus of its offerings and the involvement of President Trump,” the company said, citing risks that include the harassment of advertisers and criticism of Truth Social’s moderation practices.

“The value of TMTG’s brand may diminish if the popularity of President Trump were to suffer.”

Former President Donald Trump arrives at Manhattan criminal court with his legal team ahead of the start of jury selection in New York on Monday, April 15, 2024. (Photo by Jabin Botsford/Washington Post via AP, Pool) (ASSOCIATED PRESS)

The former president founded Truth Social after he was kicked off major social media apps like Facebook and Twitter, the platform now known as X, following the Jan. 6 Capitol riots in 2021. Trump has since been reinstated on those platforms.

The stock rose as high as $66.22 per share on March 27. On Monday, the shares were hovering just above $27 apiece.

Ines Ferre is a senior business reporter for Yahoo Finance. Follow her on X at @ines_ferre.

Alexandra Canal is a Senior Reporter at Yahoo Finance. Follow her on X @allie_canal, LinkedIn, and email her at