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Trump Media stock plunges after sharing live streaming plans

Trump Media & Technology Group (DJT) shares have declined by over 30% in the past week, its valuation also falling by $3 billion. The stock continued to tumble lower in Tuesday's trading session, closing the day 14% lower.

Yahoo Finance monitors the media company's losses ahead of the closing bell, noting its plans to roll out a live TV streaming platform on Truth Social while former President Trump's criminal trial centered around hush money payments enter into its jury selection process.

For more expert insight and the latest market action, click here to watch this full episode of Market Domination Overtime.

This post was written and updated by Luke Carberry Mogan.

Video transcript

- Shares of Trump Media also reversing earlier gains following this morning on news that the company plans to launch a live TV streaming platform. Joining us to discuss the latest, our very own Alexandra Canal. Allie, what's going on?

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ALEXANDRA CANAL: Hi, guys. Yes, so the company releasing a press release saying it's going to-- that it already has tested this live streaming TV platform for six months. And that it's going to be rolling this out into three different phases. Phase one will be on the Truth Social app for your phone. Then you're going to have access on OTT streaming platforms with your tablet, and then finally, the third phase would be for home TV streaming.

Now according to this release, the actual content is going to be focused on live TV. That includes news networks, religious channels, and family friendly content. It's also going to include content that has been canceled or is at risk of cancelation or suppression on other platforms and services. This, of course, feeds into the whole mantra of Truth Social that this is a home for canceled content creators.

Like you just mentioned, we're seeing shares down 7% on this news. But really the stock has been on quite a wild ride since its debut on the NASDAQ at the end of March. It really operates like a meme stock. Overall, a lack of fundamentals.

Donald Trump maintains a 60% stake in this company which has greatly fallen in value as we've seen that stock decline. At the time of the debut, Trump's stake was worth $5 billion. And given where shares are trading today, we're now all the way down to just two billion.

And remember, guys, you cannot cash in those shares for six months. That is the terms of this merger. I'm sure he would like to because his stake in valuation is dwindling. But we shall see again operates very much like a meme stock shares down 7%.

- Yeah, and a really good point you made earlier that it's not really the fundamentals it's operating. A lot like a meme stock, Allie. Thank you, as always, for joining us on that news this morning.