Trump Media shares extend slide as diversification bets fail to revive growth

Traders Union
All News
Financial News
Trump Media shares slide

Highlights

Trump Media shares have fallen nearly 90% from their peak to about $9, reporting $3.7 million in 2025 revenue and a $712.3 million net loss.
Truth Social lags major social platforms, ETFs tied to it have only $34 million in assets, and diversification efforts including a $6 billion TAE Technologies merger remain unproven.
Short interest stands at 14.5 million shares or 9% of public float, down from 31% in December, with retail sentiment unable to reverse the stock's downward momentum.

Business model strains and stalled expansion

As reported by Business Insider, Trump Media and Technology Group has struggled to turn its original social media concept into a durable business since going public through a SPAC in spring 2024. Shares are down nearly 90% from their peak and trade around $9, while the company reports $3.7 million in 2025 revenue and a net loss of $712.3 million, far below projections once pitched for 2026.

Truth Social, the company's core platform, has not established itself as a major rival to larger social networks and does not disclose user numbers. Outside estimates place its audience well below Facebook or TikTok, and its initial positioning as a free-speech alternative has lost force after Trump's access to major platforms is restored and X operates under Elon Musk's ownership.

The company also keeps searching for other growth avenues, with limited signs of success so far. Its bitcoin trust plan comes during a crypto sell-off, its partnership with Crypto.com is tied to broader digital-asset ambitions, and five Truth Social ETFs launched in December attract only about $34 million in combined assets, below the level analysts say is usually needed for profitability.

Trump Media also announces plans to merge with nuclear fusion company TAE Technologies in a deal valued at $6 billion, though the transaction is not yet closed and the technology is still not proven at scale. In February, the company says it is considering spinning off Truth Social after the merger to create separate pure-play businesses, and in April it replaces chief executive Devin Nunes with interim CEO Kevin McGurn.

Market implications for retail investors and short sellers

Analysts and investors cited in the report say the Trump brand alone is not enough to sustain the company's valuation or turn the stock into a durable meme trade. Some market participants once expected DJT to follow the path of GameStop or AMC, but related products, including a leveraged ETF linked to the shares, have yet to gather enough assets to become profitable.

That leaves short sellers among the clearest beneficiaries of the stock's volatility and decline. Data from S3 Partners shows short interest at about 14.5 million shares, or roughly 9% of public float, after reaching as high as 31% in December following the TAE merger announcement.

Retail shareholders still include loyal Trump supporters who argue the company needs more time to develop, particularly if the fusion transaction proceeds. Even so, the wider picture in the media, crypto and investment-products sectors suggests that Trump Media is still searching for a business line capable of matching its market valuation.

In our earlier article on Warren Buffett’s market warning at Berkshire Hathaway’s annual meeting, we highlighted his view that speculative activity is increasingly crowding out long-term investing. We also noted Berkshire’s record $380 billion cash and Treasury-bill position and Buffett’s emphasis on patience as the firm waits for truly attractive opportunities amid elevated asset prices.

This material may contain third-party opinions, none of the data and information on this webpage constitutes investment advice according to our Disclaimer. While we adhere to strict Editorial Integrity, this post may contain references to products from our partners.