Trump Media Shares Slump as Early Fervor Fades

Shares of former President Donald J. Trump’s social media company slumped more than 20 percent on Monday, as the fervor around the company’s debut on public markets last week appeared to subside.

The sell-off cut the market value of Trump Media & Technology Group, which trades under the ticker “DJT,” by some $2 billion, to about $6.5 billion.

The value of Mr. Trump’s majority stake in the company fell to about $3.7 billion, from over $6 billion at its peak last week.

Still, shares of Trump Media were higher than they were immediately before the firm merged with a public shell company on Tuesday and began trading on the Nasdaq. Strong support for the merged company after it began trading pushed its market value as high as $10 billion at one point last week.

That raised eyebrows across Wall Street, given the relatively small size of Trump Media’s business. A filing on Monday showed that the company generated just $750,000 in revenue in the fourth quarter last year, bringing its full-year total to $4.1 million. Trump Media recorded a $58 million loss in 2023. It got more than $300 million in cash as part of its merger with the shell company.

All the company’s revenues come from advertising on Truth Social, the digital platform that has become Mr. Trump’s main outlet for reaching his supporters and blasting his critics, political opponents and other perceived enemies, including the prosecutors and judges involved in his criminal and civil cases.