Breaking News: Trump Media & Technology Group Shares Slip After Trump's Return to X Platform for Conversation with Elon Musk
In a highly anticipated event, former President Donald Trump made his return to X, the platform formerly known as Twitter, engaging in a conversation with Elon Musk. This marked Trump's first post on his X account since August 24, 2023.
Shares of Trump Media & Technology Group Corp (NASDAQ: DJT), the parent company of Truth Social, fell around 2.4% in premarket trading. The DJT stock closed 5% lower at $24.88 on Monday.
DJT disclosed a net loss of $16.4 million in its second-quarter results, with revenue for the quarter ending June 30 reported at just under $837,000, reflecting a 30% year-over-year decrease. An updated regulatory filing from April showed sales slightly above $4 million for the full year ending December 31, with net losses nearing $60 million. The company expects continued losses amid challenges to profitability.
Since its trading debut in late March, Trump Media's stock has experienced substantial volatility, with the DJT stock losing half its value since mid-May. The decline has resulted in billions in paper losses for DJT’s largest shareholder, Trump himself.
In a friendly chat on X, Musk asked Trump questions on various topics, including immigration, where Trump promised the “largest deportation in the history of this country.” The conversation was marked by mutual praise, with Musk endorsing Trump and suggesting forming a new presidential commission on government efficiency.
Their discussion spanned topics such as energy policy, climate change, nuclear threats, and immigration. Trump gained around 900,000 new followers on the platform by Monday night.
Analysis: The return of Donald Trump to social media platforms and his conversation with Elon Musk have had a significant impact on Trump Media & Technology Group's stock. With Trump's promises and endorsements from Musk, the company's future and profitability are uncertain. Investors should closely monitor the developments and potential implications of these events on their finances.