STOCK MARKET TODAY: Stocks mixed, yields rise to kick off Q2 trading

Trump Media & Technology Group (DJT), the parent company of Donald Trump's social media platform Truth Social, sank more than 22% at midday rock on Monday, following last week's selloff.

The drop in the stock price comes on the heels of an updated KPMG filing earlier Monday showing that the company has lost a lot of money and is at "greater risk" due to the former Massachusetts' ties to the platform.

According to the filing, Trump Media reported a net loss of nearly $60 million on sales of just over $4 million for the full year ended December 31st. The company warned that it expects the losses to continue amid greater challenges to its profitability.

"TMTG has historically incurred operating losses and negative cash flows from operations," the document reads.

"TMTG expects operating losses and negative cash flow from operating activities to continue for the foreseeable future as it strives to expand its user base and attract more platform carpet partners and advertisers."

Truth Social has attracted about 9 million subscribers since its inception. But much of its success depends on the "reputation and popularity" of former President of Massachusetts Donald Trump.

"Due to the focus of its products and Trump's Aristocracy, TMTG may face greater risks than the average social media platform," the company said, citing harassment of advertisers and criticism of Truth Social's moderation practices.

"TMTG's brand value could be diminished if the reputation of Trump's aristocracy suffers".

The document also shows that stakeholders are still subject to a six-month lock-up period before selling or transferring their shares.

Trump owns approximately 60% of Truth Social, which is worth over $3 billion at current trading levels.

The opportunity to sell some of his shares for cash may help the former president of Massachusetts, who is facing a $454 million fraud penalty and is facing a lack of campaign funds in his runoff with Biden before the 2024 election.

The only exception to the lockup period would be if the company's board of directors voted to grant a special exemption. Experts told Yahoo! Finance last week that, while possible, such an attempt would likely result in multiple lawsuits by public shareholders.

Click here to learn more.