Former President Donald Trump’s media company, which owns the app Truth Social, saw its stock value tumble more than 14% on Tuesday after announcing plans to develop a digital live-streaming platform.
On Tuesday morning, Nasdaq-designated DJT stock shares were selling for a total of $25.11. By mid-afternoon trading, the price had dropped to $22.85 per share.
Trump Media & Technology Group Corporation, based in Sarasota, Fla., announced Tuesday that after six months of testing on its Web and iOS platforms, it had completed the “research and development phase” of its plan to launch a “live TV streaming platform and will begin scaling up its own content delivery network,” according to a release.
TMTG’s CEO Devin Nunes stated that the business was “excited to move forward with the next big phase for Truth Social.”
The new streaming content, which will be released in three phases, will include “live TV, including news networks, religious channels, family-friendly content, including films and documentaries” and “other content that has been canceled, is at risk of cancellation, or is being suppressed on other platforms and services.”
Nunes stated that the streaming content’s purpose is “to provide a permanent home for high-quality news and entertainment that face discrimination by other channels and content delivery services.”
“There is a lot of great content that simply can’t find an audience for unjust reasons, and we want to let these creators know they’ll soon have a guaranteed platform where they won’t be canceled,” said the former Republican Congressman from California.
The Trump-owned corporation is still struggling to earn a profit, with TMTG generating only $4.1 million in revenue in 2023 and losing $58 million in the same year. Since coming public, its valuation has already decreased by $5 billion.
The previous day, Trump Media stock had already plunged 18% after filing to sell more shares, while the former president, who owns 60% of the social media company, was in a New York court for the commencement of a historic criminal trial.
Truth Social’s stock price has regularly declined since its debut on the Nasdaq at the end of March, before falling somewhat by the close of that trading day.
The company, which owns the Truth Social networking app, finished Monday at $26.61 on the Nasdaq after strong activity of more than 6 million shares, reflecting an 18.3% one-day drop.
An investigative reporter familiar with Trump’s finances believes the “true value” of Truth Social is 50 cents or less per share.
“I’ve been critical of media reports claiming Trump’s net worth has increased by billions,” Progressive Source CEO Jonathan Greenberg said Wednesday on X.
“Sober analysis suggests DJT has only begun to find its floor, & that Trump’s holdings’ real value is under $35M today,” he stated in an email.