Trump Media & Technology Group's Decline
DOJ to Charge Boeing and Trump Media Faces Plunge Amid Challenges
Biden Campaign Reacts to Supreme Court Ruling
DOJ Prepares to Charge Boeing
The U.S. Department of Justice (DOJ) is reportedly preparing to charge Boeing. This development could have significant implications for the aerospace giant, which has been under scrutiny for various issues in recent years. Details of the charges are yet to be disclosed, but they are expected to pertain to the company's practices and potential misconduct.
Trump Media & Technology Group's Decline
Shares of Trump Media & Technology Group, the parent company of Truth Social, have plunged since the company began trading in March. This decline is driven by a combination of operational challenges, legal woes, and fierce competition in the social media landscape.
Majority-owned by former President Donald Trump, the company's stock closed down more than 10 percent on Friday, settling at $32.75 per share. This drop followed Trump's first presidential debate of 2024 against President Joe Biden. Earlier on Friday, the shares had risen sharply, reflecting the volatility that has characterized the stock since it began trading under the ticker symbol DJT on March 26. Since then, the stock price has fallen more than 40 percent.
Jay Ritter, a professor of finance at the University of Florida, commented on the company's financial struggles: "The company is losing tons of money with low revenue, and there is no evidence that the company has come up with a strategy of growing revenue from either paid subscriptions or advertising." He added, "The fundamental value is probably about $2 per share, roughly the amount of cash per share that the company has. The stock has been trading at approximately 15 times this value, suggesting that the long-term trend will be down."
Ritter likened the company's performance on the financial markets to that of "meme stocks," such as AMC and GameStop, which saw dramatic price swings in 2021 driven by social media-fueled buying sprees.
Biden Campaign Reacts to Supreme Court Ruling
President Joe Biden's campaign reacted on Monday to the Supreme Court's ruling on Donald Trump's presidential immunity in the DOJ election interference case. In a statement issued across the campaign's social media accounts, the Biden campaign addressed the court's decision.
The Supreme Court ruled that former presidents have absolute immunity for official acts but no immunity for private acts. The case, led by Special Counsel Jack Smith, focuses on Trump's actions surrounding the January 6 Capitol insurrection and his alleged efforts to overturn the 2020 election results. The court has sent the case back to a lower court in Washington, D.C. to determine what constitutes an official act. While some charges against Trump may still proceed, conservatives view the ruling as a partial victory, as it makes it less likely the case will go to trial before the November election.
Biden's campaign issued the following statement regarding the court's ruling:
"Today's ruling doesn't change the facts, so let's be very clear about what happened on January 6: Donald Trump snapped after he lost the 2020 election and encouraged a mob to overthrow the results of a free and fair election. Trump is already running for president as a convicted felon for the very same reason he sat idly by while the mob violently attacked the Capitol: he thinks he's above the law and is willing to do anything to gain and hold onto power for himself."
These developments highlight the ongoing legal and political battles shaping the landscape as the 2024 presidential race heats up. Investors and political observers alike will be closely watching the outcomes and implications of these significant events.