Trump Media shares plummet after Truth Social announces launch of live TV streaming platform

This story originally appeared in quartz.

shares Trump Media Technology Groupthe company behind the predecessor president donald trumpIts social media platform Truth Social fell sharply again on Tuesday after announcing the launch of a streaming platform.

Truth Social will broadcast live TVThat includes news, religious channels, “family-friendly content” and “other content that has been canceled, is at risk of cancellation, or is being suppressed on other platforms and services,” the company said. Trump Media said that like Truth Social itself, the streaming platform will be “independent of big tech companies.”

After the news was announced, Trump Media’s stock price fell more than 10% to $23.85 per share in Tuesday morning trading. This brings the company’s market capitalization down to below $3.4 billion – slashed its market valuation by more than half Since the first trading week high.

The company said the streaming service “is expected to significantly enhance and expand Truth Social, Trump’s iconic brand whose free speech mission resonates deeply with its community of users and supporters.” Truth Social has Total visits 7.7 million times Last month, according to data aggregator SimilarWeb.

“Through our streaming content, we aim to provide a permanent home for high-quality news and entertainment that faces discrimination from other channels and content delivery services,” Trump Media CEO Devin Nunes said in a statement on Tuesday. “There is a lot of great content that simply cannot find an audience for unfair reasons, and we want these creators to know that they will soon have a guaranteed platform that won’t be cancelled.”

Trump Media, the company behind Truth Social, listed on Nasdaq on March 26 under the stock symbol DJT after completing its listing. Merged with Digital World Acquisition Corp.,A Special Purpose Acquisition Company (SPAC).

just a week later Hot debutTrump Media Stocks Started to take a turn for the worse After arriving at the company Disclosure of operating losses By 2023, the company will have revenue of nearly $16 million, plus interest expense of $39.4 million, on revenue of just $4.1 million.This is related to operating loss Revenue in 2022 is $1.5 million on revenue of $23.2 million, plus interest expense of $2 million, according to regulatory filings.

The company’s stock price continues to plummet this week following Trump media reports Registered resale of substantially all of its outstanding securities. Certain insider holdings remain subject to lock-up agreements, which are due to expire in August or September.

Nunes, a former California Republican congressman, told Fox News earlier this month, The company is ‘well positioned’ Despite concerns about its profitability.he He didn’t say when he expected it to be The company can make a profit.

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