🚀 Trump Media falls more than 25%

Market Overview
Read time 1.4 minutes

Year To Date Performances:

1. Trump Media's share price dropped significantly, down over 25% after reporting a $58.2 million net loss for 2023, against a modest revenue of $4.1 million. This loss is attributed mainly to a $39.4 million interest expense. This decline comes despite the previous year's net profit of $50.5 million on $1.47 million in revenue. With just $2.7 million cash on hand at year's end, the company, owner of the Truth Social app, anticipates ongoing operating losses. Trump Media, with a market cap still over $6.8 billion, also faces risks from its association with former President Trump and acknowledged "material weaknesses" in financial reporting controls. Trump owns 57.3% of the company, potentially increasing his net worth significantly if additional "earn-out" shares are awarded. The company's valuation, buoyed by Trump's supporters, faces unique risks related to its focus and Trump's involvement, including potential platform hacking, criticism, and increased legal challenges.

2. Gold's price soared to a record peak of $2,265.73 per ounce. The new high comes amid speculations of a Federal Reserve interest rate cut, ongoing geopolitical unrest, and robust demand from China. Despite this surge, about 14% since mid-February, Federal Reserve Chair Jerome Powell remains hesitant to lower rates immediately. With upcoming job growth data, the market is leaning towards a 61% likelihood of a rate reduction by June, potentially elevating gold prices further.

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4. Headlines

   1. Stocks were down to start Q2 as treasury yields increased.

   2. BlackRock is confident that Wall Street’s adoption of Bitcoin will help stabilize prices.

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