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The Trump Media Stock Plunge Continues as Former President Faces Criminal Trial
Trump Media, the media company founded by former President Donald Trump, faced another rough week on the stock market. The price of Trump Media closed trading Friday down nearly 20% for the week, with DJT shares dropping more than 8% within the first hour of trading.
Despite a slight increase of around .5% on Friday, shares closed up 18 cents at $32.59, which is more than $38 lower than their initial selling price of $70.90 back in March. The company has seen a significant 47.4% drop in shares in April alone.
Former President Donald Trump, the biggest shareholder in the company with nearly 60% of the stock, is also facing legal troubles. Trump is set to start jury selection for his criminal trial in Manhattan Supreme Court.
The company’s market cap has plummeted from $9.5 billion to $4.45 billion in less than three weeks. Trump Media reported a net loss of $58 million last year, adding to its financial woes.
Short interest in DJT was $208.7 million, with 5.44 million shares being shorted. There were fewer than 100,000 shares of Trump Media available to borrow for short selling. Additionally, financing costs for short trades in Trump Media sharply fell from 900% to 200%.
Investors are closely watching the developments surrounding Trump Media as the company continues to face challenges both in the market and in the courtroom.
