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Truth Social shares tumble again. It's making for an incredibly volatile ride

Shares of the company behind Truth Social slumped on Monday, continuing its volatile ride since its strong debut in late March.
Chris Delmas
/
AFP via Getty Images
Shares of the company behind Truth Social slumped on Monday, continuing its volatile ride since its strong debut in late March.

Shares of Trump Media & Technology Group slumped 18% on Monday, continuing its volatile ride since the company's spectacular trading debut in late March.

Shares ended the day at $26.61, now less than half of where they ended on March 26, when the company started trading.

Trading since its debut has been rocky, with the company suffering some big losses along the way.

The latest catalyst on Monday was the company's announcement it was issuing over 21 million shares.

Having more shares on the market is not great news for investors as it makes the stakes of existing shareholders less valuable — including for former President Trump, the majority shareholder.

It can also make trading volatile if a shareholder sells a lot of stock at once.

Although Trump's stake in the company has gone up and down in value, it's still currently valued at about $2 billion — a substantial sum for a company that lost $58 million last year and had marginal revenue.

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Rafael Nam
Rafael Nam is NPR's senior business editor.