Trump Media & Technology Group, the parent company of Truth Social, former President Donald Trump’s social media platform, went public on March 26, 2024. The stock trading of the company has been compared to meme stocks, where prices are influenced more by popular support rather than financial success. Keith Patrick Gill, also known as Roaring Kitty, recently posted a meme that sparked a surge in meme stock trading, driving up prices of GameStop and AMC.
Investors in meme stocks often work against short sellers by buying up shares and driving prices higher, creating a self-fulfilling prophecy in the market. Trump Media has armed investors with strategies to combat short selling, which has contributed to the stock’s rapid rebound over the last month. The company’s revenue for 2023 showed significant losses, raising doubts about its future sustainability, and the accounting firm handling its finances was shut down due to allegations of fraud.
Despite the potential financial setbacks for Trump Media, former President Trump’s legal battles have also taken a toll financially, with mounting legal fees and fines adding up to millions of dollars. Trump has been ordered to pay significant amounts in civil cases and fines related to his hush money trial. Although Trump’s shares in Trump Media are worth billions, he cannot cash out until the end of September 2024. Overall, the financial and legal challenges faced by Trump Media and former President Trump continue to unfold as the company navigates the volatile stock market and legal battles.
Photo credit
www.usatoday.com
