Trump Media, which has never turned a profit, will buy back shares
The parent company of President Trump’s social media outlet, Truth Social, announced a plan to opportunistically repurchase and retire some $400 million in stock and warrants, sending the shares up early Monday.
While share repurchases have become a popular way for profitable companies to return excess cash to shareholders in recent decades, Trump Media & Technology Group is not a profitable company.
It produced a mind-bending loss of $400 million last year, despite only booking revenue of $3.6 million. (It cited legal fees, as well as $107 million in stock-based compensation, among other reasons.)
Perhaps unsurprisingly, the stock has been an absolute dog, dropping more than 70% from its March 2024 public debut via a somewhat hairy SPAC merger.
The president is, essentially, the largest single individual holder of DJT, with the company's annual report saying he was the beneficial owner of roughly 58% of the common stock outstanding at the end of 2024.
It produced a mind-bending loss of $400 million last year, despite only booking revenue of $3.6 million. (It cited legal fees, as well as $107 million in stock-based compensation, among other reasons.)
Perhaps unsurprisingly, the stock has been an absolute dog, dropping more than 70% from its March 2024 public debut via a somewhat hairy SPAC merger.
The president is, essentially, the largest single individual holder of DJT, with the company's annual report saying he was the beneficial owner of roughly 58% of the common stock outstanding at the end of 2024.
