Trump Media & Technology Group (DJT 2.40%) stock saw another round of big sell-offs over the last week of trading. The company's share price ended the week down 14.5%, according to data from S&P Global Market Intelligence.
Trump Media stock fell this week as the former-president and current candidate continued to post messages on X, the platform formerly known as Twitter. By posting messages on X in addition to Truth Social, Trump may be taking away some of the core appeal of his company's platform.
Trump Media stock feels the X factor
Donald Trump is in the thick of campaign season and has been using the X platform to boost his media reach. On the other hand, he's also Trump Media & Technology's largest shareholder. Treating Truth Social as a platform that was the exclusive landing spot for most of his messages had given the platform a hook, and investors are worried that's now being diminished.
Adding another complicating factor, the company made filings last week to register up to 5.1 million shares of its stock by some company shareholders and insider selling restrictions will lift soon. Trump Media stock hit a new all-time low on Friday and closed out the daily session priced at $19.50 per share.
What comes next for Trump Media stock?
Even though its trading near a record low, Trump Media still has a market capitalization of roughly $3.85 billion. It's possible that positive news on the election front or other developments could help to push the company's share price significantly above current levels, but investors should understand that the business's outlook is highly speculative at this point.
Trump Media Company posted a net loss of $16.4 million in the second quarter and closed out the period with roughly $344 million in cash and equivalents and no debt. Meanwhile, roughly half the company's net loss last quarter came from legal expenses including costs related to the completion of its SPAC merger. The company's Q2 loss actually looks quite small in comparison to its overall valuation, but it also raises some questions.
Trump Media is still in the relatively early stages of ramping up its business, and the company recorded revenue of just $828,000 in the second quarter. It's likely that the business will have to significantly increase its spending to drive substantial sales growth, and its not clear how Truth Social and its new streaming platform will be successfully monetized.
