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Trump’s media company loses a third of value after initial surge in trading | Donald Trump

Donald Trump’s media and technology group, DJT, has lost about 36% of its value since its March 22 IPO, bringing the former president’s stake down to about $2.8 billion.

As of Monday afternoon, DJT stock was trading at around $36, down from a high of $66 seen on March 27. But market analysts say it is too early to draw firm conclusions about the writedown because the stock has become one of the most shorted stocks on the Nasdaq exchange, meaning traders are betting on his fall.

And the value of Trump’s social media company is now where it was when Trump Media merged in a special purpose acquisition company (Spac) deal with shell company DWAC earlier in March.

The value of DWAC, renamed DJT, initially soared for several days during its early days as a publicly traded company, briefly increasing Trump’s fortune — on paper — to more than $6 billion. But the company generates tiny revenue ($4.1 million last year) and no profit.

Some investors bought DJT stock to show support for Trump’s campaign for a second presidency in November, which he embarked on despite more than 80 pending criminal charges for election subversion, withholding classified documents after left the Oval Office and silent. cash payments.

He also faces multimillion-dollar civil penalties for business practices deemed fraudulent and a rape allegation that a judge found substantially true.

But some are now selling their DJT shares just as quickly.

Meanwhile, Trump himself has failed to cash in. He is subject to a lock-up agreement requiring him to wait six months – until September – to sell his shares.

The company and some of its executives are already inundated with lawsuits. The transaction was approved despite a U.S. Securities and Exchange Commission investigation into DWAC. Criminal charges have been filed against a DWAC executive, accusing him of insider trading.

Two former contestants on Trump’s former reality TV series, The Apprentice, also filed suit, claiming the ex-president planned to dilute their stakes in the company. Trump counterattacked, arguing that they don’t deserve their stake.

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Trump maintains that DJT’s Truth Social platform – created to counter what he has described as censorship in more established media outlets – is destined to succeed. In a post on the platform, he described the company’s business as “very strong.”

Truth Social CEO Devin Nunes, a former US congressman, also expressed confidence, noting that the company now has “no debt and over $200 million in the bank, which opens up many opportunities expansion and improvement of our platform.

Nunes added: “We intend to take full advantage of these opportunities to make Truth Social the preeminent free speech platform for the American people. »

News Source : www.theguardian.com
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Sara Adm

Aimant les mots, Sara Smith a commencé à écrire dès son plus jeune âge. En tant qu'éditeur en chef de son journal scolaire, il met en valeur ses compétences en racontant des récits impactants. Smith a ensuite étudié le journalisme à l'université Columbia, où il est diplômé en tête de sa classe.Après avoir étudié au New York Times, Sara décroche un poste de journaliste de nouvelles. Depuis dix ans, il a couvert des événements majeurs tels que les élections présidentielles et les catastrophes naturelles. Il a été acclamé pour sa capacité à créer des récits captivants qui capturent l'expérience humaine.
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