Trump Media's Bold $400M Stock Buyback Raises Eyebrows Amid Mounting Losses
So, here's what’s making waves today—Trump Media & Technology Group, the company behind Truth Social and trading under the ticker DJT , has announced a surprise move: a $400 million share and warrant buyback . Yep, you heard that right. This is a company that’s never turned a profit, has had a pretty turbulent ride since going public, and is still managing to pull off a maneuver usually reserved for cash-rich giants. Let’s unpack what’s going on.
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Trump Media’s move to repurchase its own stock might initially seem like a power play—a way to show confidence or support for its sagging share price. The market certainly responded with some optimism, with DJT shares popping early Monday. But let’s not forget the numbers. The company posted a $400 million net loss in 2024 , on revenues of just $3.6 million . That’s an eye-watering loss ratio by any standard.
What’s behind that massive loss? Well, a big chunk of it comes from legal expenses and a staggering $107 million in stock-based compensation . In short, the financials are more than shaky—they’re downright alarming.
And then there’s the history. DJT stock has taken a nosedive of over 70% since its March 2024 debut via a not-so-smooth SPAC merger. Investors who jumped in early probably aren't thrilled right now. Despite all this, the company is moving ahead with a buyback—perhaps in a bid to stabilize the stock or signal strength to the market.
Here’s another twist: Donald Trump himself is the largest shareholder, reportedly owning about 58% of the common stock as of the end of 2024. So any share buyback has the side effect of concentrating ownership even further—effectively tightening Trump’s grip on the company.
What makes this news really stand out is the context. Stock buybacks are usually a hallmark of healthy companies—ones with strong cash flows and few better places to invest their money. For Trump Media, which is burning through cash with little revenue in sight, this move seems counterintuitive, if not downright risky. But then again, when has anything about DJT or Truth Social followed the traditional playbook?
So while this headline may give the impression of corporate confidence, it’s important to read between the lines. Is this a genuine effort to boost shareholder value, or a PR move in the face of harsh financial realities? Only time will tell—but for now, DJT is once again at the center of financial and political intrigue.
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