Trump stock tanks after issuing tens of millions new shares | CNN Business
www.cnn.com
Trump Media & Technology Group’s stock is tumbling again after the company announced a massive new influx of 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.

  • @breadsmasher@lemmy.worldEnglish
    63•7 months ago

    Matthew Tuttle, chief executive of Tuttle Capital Management, says that management would be “stupid” not to issue new stock, even though the move will upset shareholders. “Whenever you see a stock jump, like you saw this jump, a secondary offering is always a risk,” said Tuttle.

    Is this moron holding his chart upside down?