Investors in Trump Media & Technology Group's stock witnessed another dip even after its social media platform, Truth Social, announced it was entering the streaming world.
According to CNN, the shares of Trump Media plunged by 14% on Tuesday following an 18% drop on Monday.
Trump Media Platform, Truth Social, to Venture Into the Streaming World
Truth Social announced on Tuesday that it is planning to launch a streaming platform. This move requires a large amount of capital but can be challenging to achieve profitability, which media giants like Disney are experiencing now.
Trump Media's stock, majority-owned by former President Donald Trump, has dipped by over 70% from its all-time high on March 26, the day after the company merged with blank-check acquisition firm Digital World Acquisition Corp. to go public.
Despite still being worth billions of dollars, Trump Media is struggling to find a way to make money and needs more cash.
Truth Social Streaming Initiative Failed to Enthuse Trump Media Investors
The announcement about Truth Social's streaming initiative did not give Trump Media investors any reason to gush over the company. Truth Social, the flagship product of Trump Media, disclosed its plans to launch a new streaming platform after six months of testing its web, iPhone, and iPad apps for live TV streaming.
The company aims to establish its own content delivery network for streaming apps for phones, tablets, and eventually smart TVs. It intends to offer live news, religious programming, and family-friendly movies, documentaries, and shows that have been canceled, are "at risk of cancellation," or are "being suppressed on other platforms and services."
"We're excited to move forward with the next big phase for Truth Social. With our streaming content, we aim to provide a permanent home for high-quality news and entertainment that face discrimination by other channels and content delivery services," Trump Media CEO Devin Nunes said in a statement.
"There is a lot of great content that simply can't find an audience for unjust reasons, and we want to let these creators know they'll soon have a guaranteed platform where they won't be cancelled," he added.
The value of Donald Trump's shares in the company has soared to a peak of $5.2 billion after Trump Media merged with Digital World in late March. But after a few days, it plunged to about $1.8 billion. On Tuesday, Trump's net worth dropped roughly $300 million due to the plunge in stock price.
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