Why Trump Media Stock Is Plummeting Today

Core Viewpoint - Despite Donald Trump's victory in the 2024 presidential election, Trump Media's stock is experiencing significant sell-offs as investors take profits after a period of gains [2][3][4]. Company Performance - Trump Media's stock price was down 20.4% as of 2:45 p.m. ET, following a previous rise of 8.9% after the election results [1][3]. - Over the last month, Trump Media's stock has increased approximately 74%, driven by positive polling and analysis regarding Trump's election prospects [3]. - In the third quarter, Trump Media reported an operating loss of $23.7 million on sales of $1 million, but ended the period with cash and equivalents of $672.9 million and no debt [5]. Business Operations - The core business of Trump Media revolves around its Truth Social platform, which currently has low user engagement and monetization levels [6]. - The company has recently launched a new streaming service, but it is not expected to contribute significantly to revenue until next year [6]. - Despite the current valuation pullback, Trump Media is valued at approximately $5.7 billion, necessitating substantial sales growth in the coming years to sustain or increase this valuation [7].