Trump Media Stock Tanks Again as Trump Is Buried in Legal Troubles
Trump Media stock is once again slumping. Donald Trump’s social media venture reaudited its finances and filed them with the Securities and Exchange Commission Monday, confirming that the company had a whopping net loss of $58.2 million in 2023. As a result, Trump Media shares dropped more than 6 percent Monday afternoon. The company had to change auditors last month after its previous firm, BF Borgers, was charged with “massive fraud” and subsequently barred from ever serving as accountants again. “As a result of [BF Borgers’] fraudulent conduct, they not only put investors and markets at risk by causing public companies to incorporate noncompliant audits and reviews into more than 1,500 filings with the Commission, but also undermined trust and confidence in our markets,” Gurbir S. Grewal, the director of the SEC’s Division of Enforcement, said at the time, calling the firm a “sham audit mill.” Trump Media executives have reached out to the SEC to see why the company’s stock is performing so poorly, and its CEO, former Representative Devin Nunes, complained in April to Nasdaq’s CEO that the company was the victim of illegal “naked short selling.” In response, he was brutally mocked on Wall Street. It’s the latest piece of bad news for what was expected to be a cash cow for Trump. The company reported a staggering $327.6 million loss last quarter, and only brought in $770,500 in revenue. The company is trading at just $42 per share, much less than the $72 it was trading at in March after its initial public offering. Trump can’t brag his way out of his media company’s issues, either: The SEC could see it as an illegal attempt to pump up Trump Media stock. And even if he could get away with it, he still can’t sell off any of that stock for six months without board approval, a difficult prospect considering his hefty legal bills.
Trump Media stock is once again slumping.
Donald Trump’s social media venture reaudited its finances and filed them with the Securities and Exchange Commission Monday, confirming that the company had a whopping net loss of $58.2 million in 2023. As a result, Trump Media shares dropped more than 6 percent Monday afternoon.
The company had to change auditors last month after its previous firm, BF Borgers, was charged with “massive fraud” and subsequently barred from ever serving as accountants again.
“As a result of [BF Borgers’] fraudulent conduct, they not only put investors and markets at risk by causing public companies to incorporate noncompliant audits and reviews into more than 1,500 filings with the Commission, but also undermined trust and confidence in our markets,” Gurbir S. Grewal, the director of the SEC’s Division of Enforcement, said at the time, calling the firm a “sham audit mill.”
Trump Media executives have reached out to the SEC to see why the company’s stock is performing so poorly, and its CEO, former Representative Devin Nunes, complained in April to Nasdaq’s CEO that the company was the victim of illegal “naked short selling.” In response, he was brutally mocked on Wall Street.
It’s the latest piece of bad news for what was expected to be a cash cow for Trump. The company reported a staggering $327.6 million loss last quarter, and only brought in $770,500 in revenue. The company is trading at just $42 per share, much less than the $72 it was trading at in March after its initial public offering. Trump can’t brag his way out of his media company’s issues, either: The SEC could see it as an illegal attempt to pump up Trump Media stock. And even if he could get away with it, he still can’t sell off any of that stock for six months without board approval, a difficult prospect considering his hefty legal bills.
