Shares of $djt Trump Media & Technology Group Corp. have tumbled sharply, dropping over 18% this past week alone and now trading roughly 87% below their value at the company’s March 2024 SPAC merger. The steep slide follows the release of disappointing Q2 earnings, where the company reported a net loss of $238 million on just $1.7 million in revenue, primarily from advertising on its Truth Social platform. Much of the loss stemmed from significant write-downs on cryptocurrency holdings, underscoring ongoing challenges in finding a sustainable business model.
Adding to investor concerns, $djt is navigating a high-profile federal lawsuit filed by media groups challenging its Truth+ API service, which charges investment firms up to $100,000 monthly for early access to President Trump’s posts. Plaintiffs argue this paywall violates First and Fifth Amendment protections by restricting equal access to presidential communications, raising constitutional questions that could impact the company’s monetization strategy. This legal scrutiny compounds pressure on a company already contending with declining user engagement—Truth Social’s monthly visitors have dropped about 36% year-over-year—and regulatory attention from senators urging SEC investigation.
Insider activity also caught attention this week when CFO Phillip Juhan sold nearly 19,000 shares in an automated sell-to-cover transaction to meet tax obligations, reducing his direct holdings by 3% but retaining a significant stake valued near $4.8 million. Despite these challenges, $djt is pursuing a surprising pivot through a planned merger with nuclear fusion startup TAE Technologies, aiming to diversify beyond social media and crypto, though this venture is still in early stages with no revenue to date.
Overall, Trump Media & Technology’s market cap remains around $2.3 billion, but with minimal revenue and mounting losses, the company faces an uphill battle to stabilize its stock and business model amid legal, financial, and operational headwinds.
Markets will resume trading on Monday, August 17th, 2026 at 9:30 AM ET.
Did you know?
Stocks of companies that merge with SPACs often experience heightened volatility in the first two years post-merger, as investors adjust to new business models and financial disclosures.
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