Trump Media & Technology Group (TMTG), the parent company of the social media platform Truth Social, is facing a turbulent moment as it filed paperwork with the U.S. Securities and Exchange Commission (SEC) allowing President Donald Trump’s trust to sell up to 115 million shares of the company’s stock, valued at up to $2.3 billion. Following this announcement, TMTG’s stock price saw a significant drop, falling by 7.4% on Wednesday, April 2, 2025, and continuing its decline into the next trading day.
The filing revealed plans to sell more than 142 million shares, including Trump’s personal stake of 114 million shares, which are held in a trust managed by his son, Donald Trump Jr. The SEC noted that the sale would be conducted “from time to time in one or more offerings.” Other shareholders, including U.S. Attorney General Pam Bondi and TMTG Chair Devin Nunes, are also looking to sell a combined 134 million shares, in addition to TMTG’s plans to issue 8.4 million new shares.
In a bid to calm investor fears, TMTG asserted that the filing was merely a “routine filing” and denied any intention of paving the way for the Trump trust to sell its shares. Despite these reassurances, the company’s stock has plummeted more than 40% amid growing concerns over Trump’s trade policies, which have left investors jittery.
On April 3, 2025, TMTG’s stock price shed another 4%, bringing it down to $18.41, as trade tensions escalated following Trump’s announcement of sweeping global tariffs. These tariffs include a baseline 10% on imports and targeted duties on key trading partners such as China and the European Union. The uncertainty surrounding these tariffs has unsettled the market, contributing to a broader decline in the S&P 500.
In the past week alone, TMTG’s stock has dropped 8.04%, with a monthly decline of 17.33%. The pre-market trading on April 4 showed further weakness, with shares slipping another 1.19% to $18.19. Investors are particularly anxious about the potential for significant stock dilution, as the SEC filing suggested that Trump’s trust could sell up to $2.15 billion worth of shares, exceeding 129% of the company’s public float.
Despite the ongoing turmoil, TMTG has garnered a loyal base of around 650,000 shareholders, primarily small investors who view their investments as a show of support for Trump. However, the company’s financials present a stark contrast to its market valuation. In 2024, TMTG reported revenues of less than $4 million, while its net loss ballooned to $400.9 million, up from $58.2 million in 2023. This raises questions about the sustainability of its current valuation, which trades at an astronomical price-to-sales (P/S) ratio of 1,121.
The volatility of TMTG’s stock is compounded by its historical performance. Leading up to the November 2024 election, shares surged to $51, fueled by optimism regarding Trump’s political future. However, following the election results, the stock experienced a rapid decline as investor enthusiasm waned. The current sell-off reflects a broader disillusionment with the company’s prospects amid political and economic uncertainties.
Adding to the complexity, TMTG has ventured into financial services, including a partnership with Crypto.com to launch ETFs that blend digital assets with U.S.-focused stocks. While these initiatives have sparked brief rallies, they have yet to yield tangible results for investors seeking a turnaround.
Recent trading data indicates that TMTG opened at $18.41 on April 4, 2025, with a quick ratio of 47.49 and a current ratio of 45.33, alongside a debt-to-equity ratio of 0.01. The company has a one-year low of $11.75 and a high of $56.55, reflecting the stark volatility in its stock performance. Notably, hedge funds and institutional investors hold only 4.29% of the stock, indicating a lack of confidence from larger investors.
As the market grapples with the implications of Trump’s trade policies and the looming stock sale, the future of TMTG hangs in the balance. Investors are left to ponder whether the current valuation can be justified given the company’s financial struggles and the potential for significant stock dilution. The unfolding situation presents a cautionary tale about the intersection of politics and business, where the whims of political tides can have profound impacts on market performance.
In summary, Trump Media & Technology Group finds itself at a crossroads, with its stock facing intense pressure from both external market forces and internal uncertainties. As the company navigates these challenges, the question remains: will TMTG be able to stabilize and regain investor confidence, or is this just the beginning of a deeper decline?
