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DJT shares tumble 13% as Trump Media stock sell-off accelerates

In Business
June 18, 2024

Aytac Unal/ | Anadolu | Getty Images

Shares of Trump Media & Technology Group dropped more than 13% on Tuesday, continuing the stock’s tumble following the conviction of former President Donald Trump, the company’s majority shareholder.

Trump Media shares, which trade under the ticker “DJT,” are down about 40% since May 30, when a New York jury found Trump guilty of 34 felony counts of falsifying business records.

Tuesday’s sell-off coincides with a June 18 deadline that could see some of the company’s investors exercise stock warrants.

In a filing to the Securities and Exchange Commission on April 15, Trump Media disclosed its plans to offer nearly 21.5 million shares of common stock issuable “upon the exercise of warrants.”

Trump Media’s registration statement has not been declared effective by the SEC. Until that happens, the shares it seeks to register cannot be sold. But the registration statement notes that holders of Trump Media warrants can exercise them on a “cashless basis” starting Tuesday and until the registration statement becomes effective.

The company on Tuesday also amended its registration statement to warn investors that there is little the company can do to stop former President Donald Trump from using other social media platforms, beyond the company’s signature Truth Social network.

“If TMTG disagrees with President Donald J. Trump about the scope of his obligation to use, or first post on, Truth Social, TMTG lacks any meaningful remedy with respect to such disagreement,” the amended lines say.

Such a scenario, the company cautions “could have a material adverse effect on the business and/or operations of TMTG.”

The warning comes just weeks after the former president — who uses Truth Social almost exclusively to make his public statements — joined the social media app TikTok.

Truth Social, meanwhile, has struggled to maintain its small user base. The social media site’s average number of monthly visits from May 2023 to April 2024 was 39% lower than the previous 12-month period, according to digital intelligence platform Similarweb.

Trump Media shares also took a hit last week, falling more than 5% on June 10 when the company submitted its reaudited financial statement after its last auditor was charged with fraud.

Trump Media & Technology Group disclosed a net loss of $327.6 million and total revenue of $770,500 in the first quarter of the year on its most recent earnings report, filed in May.

The company had a market cap of about $5.4 billion as of 2:30 p.m. ET.

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