Trump Media and Technology Group’s (TMTG) stock has fallen again. The company announced a new release of shares, hoping it could help their financial situation. However, selling more stock will reduce the value of current shares, affecting the wealth of shareholders including Trump himself. The new offer would add 15% more stock, thus potentially lowering existing shares’ worth.
On Monday, the share price for TMTG ended 18% lower. Since the company started trading publicly as TMTG, it has lost over 60% of its peak value. Some experts think this decrease will be temporary.
If you bought TMTG shares at its peak value, you have now lost more than half of your money. This has also reduced Trump’s net worth. However, they are now one step closer to selling shares once restrictions, such as a six-month lock-up period, are lifted.
Reasons for the stock’s fluctuations include Trump’s controversial image and the return to Wall Street despite legal issues. Experts warn rookie investors to be cautious, as the company’s high valuation does not match its performance. In 2023, TMTG lost $58 million while only making $4.1 million in revenue.
Vocabulary List:
- Fluctuations (noun): Changes in valuelevelor status.
- Restrictions (noun): Limits or controls placed on something.
- Valuation (noun): The process of determining the value of something.
- Rookie (noun): A person who is new to a particular activity.
- Temporary (adjective): Lasting for a limited time not permanent.
- Net worth (noun): The total assets minus total liabilities of an individual or company.
