HomeBusinessDJT shares fall 8% after Trump was found guilty in a hush...

DJT shares fall 8% after Trump was found guilty in a hush money trial

Shares of Trump Media & Technology Group (DJT), the parent company of Truth Social, former President Donald Trump’s social media platform, fell as much as 8% during extended trading hours on Thursday after Trump was found guilty of all 34 counts of falsifying corporate data intended to influence the 2016 presidential campaign.

Trump, who is likely to appeal the verdict, will be sentenced on July 11 and faces up to four years in prison on each charge.

Trump Media, the parent company of Truth Social, went public after a merger with special purpose acquisition company Digital World Acquisition Corp.

Shares are down about 10% since the company’s public debut in late March.

Trump founded Truth Social after being kicked off major social media apps like Facebook and Twitter, the platform now known as president posted almost exclusively to his Truth Social account during the trial.

In April, an updated filing with regulators showed that Trump Media reported revenue of just over $4 million, while net losses were nearly $60 million for the full year ended December 31. The company warned that it expects losses to continue amid heightened profitability challenges.

See also  Talks between Paramount and Skydance alternate as rival bidders press their case

In May, the company reported first-quarter results showing a $327 million loss, largely related to expenses related to the SPAC deal. The company announced on April 29 that more than 621,000 different shareholders owned shares in Trump Media, noting that the “vast majority” of these were retail investors.

Trump has about a 60% stake in Truth Social. At Thursday’s closing price of about $52 per share, Trump Media has a market capitalization of roughly $7 billion, giving the former president a stake of about $4.2 billion. Immediately after the company’s public debut, Trump’s stake was worth just over $4.5 billion.

At the end of April, the stock reached a milestone that netted Trump another $1.2 billion. However, interested parties are still subject to a six-month lock-up period before they can sell or transfer shares.

Former President Donald Trump leaves the courthouse after a jury found him guilty of all 34 crimes in his criminal trial at Manhattan Criminal Court, Thursday, May 30, 2024, in New York.  (Justin Lane/pool photo via AP)

Former President Donald Trump leaves the courthouse after a jury found him guilty of all 34 crimes in his criminal trial at Manhattan Criminal Court, Thursday, May 30, 2024, in New York. (Justin Lane/pool photo via AP) (ASSOCIATED PRESS)

Alexandra Canal is a senior reporter at Yahoo Finance. Follow her on X @allie_canal, LinkedIn, and email her at alexandra.canal@yahoofinance.com.

For the latest earnings reports and analysis, earnings rumors and forecasts, and corporate earnings news, click here

See also  Charles Schwab will roll out an alternative platform for qualified investors

Read the latest financial and business news from Yahoo Finance

- Advertisement -
RELATED ARTICLES

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Most Popular

Recent Comments