Trump stock tanks after issuing tens of millions new shares
Trump Media & Technology Group’s stock is tumbling again after the company announced a massive new influx of shares. The struggling company is rapidly losing money, and a new stock offering could help it stay afloat.
But there’s a downside to going back to the market with new shares: A new public stock offering of 21.5 million shares announced Monday would add more than 15% more stock to the publicly available shares of the Truth Social owner. That would substantially devalue existing shareholders’ stakes — including that of former President Donald Trump.
Shares of TMTG (DJT) fell more than 15% Monday. The stock had rocketed higher in recent months in anticipation of merging a blank-check acquisition company with Trump’s media business. But it has lost more than 60% of its value from its peak on March 26, the day after the merger was completed and it started trading publicly as TMTG.
I'm correcting you when you implied that this a practice of decades ago. It is not. It has been the standard. Trump is the exception. I don't foresee that changing. So Trump failing to do so is even worse than if it was some outdated practice.
Oh cool. So he'll be putting his shares in a blind trust then?
Even the blind trust knows that's a terrible investment.
In all seriousness, what's the over under whether the company will be delisted from nasdaq this month?
not gonna happen. it's taken some hits but there is a good enough chance that Trump will be the next president that it's not going anywhere.
Reality really isn't agreeing with you here bud ;)
In what way?
Have you been following the stock at all?
Yeah its down. Whats your point?