Shares of Trump Media & Technology Group (DJT), the parent company of former President Donald Trump’s social media platform Truth Social, fell 6% in early trading on Friday after Trump was found guilty on all 34 counts of falsifying business records intended to influence the 2016 presidential campaign.
Trump, who will likely appeal the verdict, will be sentenced on July 11 and faces up to four years in prison on each count.
Trump Media, the parent company of Truth Social, went public on the Nasdaq after merging with special purpose acquisition company Digital World Acquisition Corp.
Shares have fallen about 10% since the company’s public debut at the end of March.
Trump founded Truth Social after he was kicked off major social media apps like Facebook and Twitter, the platform now known as X, following the Jan. 6 Capitol riots in 2021. Trump has since been reinstated on those platforms, although the former president almost exclusively posted on his Truth Social account throughout the trial.
In April, an updated regulatory filing showed Trump Media reported sales of just over $4 million as net losses reached nearly $60 million for the full year ending Dec. 31. The company warned it expects losses to continue amid greater profitability challenges.
In May, the company reported first quarter results that revealed losses of $327 million, mostly tied to expenses related to its SPAC deal. The company disclosed as of April 29 over 621,000 different shareholders owned stock in Trump Media, noting the “vast majority” of these were retail investors.
Trump maintains a roughly 60% stake in Truth Social. At Thursday’s closing price of around $52 a share, Trump Media boasts a market cap of roughly $7 billion, giving the former president a stake worth around $4.2 billion. Right after the company’s public debut, Trump’s stake was worth just over $4.5 billion.
In late April, the stock hit a milestone that secured Trump an additional $1.2 billion. Stakeholders, however, are still subject to a six-month lockup period before selling or transferring shares.
Alexandra Canal is a Senior Reporter at Yahoo Finance. Follow her on X @allie_canal, LinkedIn, and email her at alexandra.canal@yahoofinance.com.
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