Trump media stocks tumbled Monday after an accounting firm, stepping in to replace a previous auditor accused of "massive fraud," submitted a new report on the company's finances, CNBC reports.
Former President Donald Trump's eponymous company saw prices dip 7 percent after the company announced it delivered an updated report to the U.S. Securities and Exchange Commission, according to the report and SEC filings.
Trump Media stock was down roughly 6 percent as of 1 p.m. ET, according to CNBC.
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Truth Social's parent company CEO Devin Nunes said in a press release that the latest filing amended an April registration statement.
The Arizona-based firm Semple, Marchal & Cooper LLP delivered Monday's filing about a month after the previous auditor BF Borders was accused of submitting 1,500 fraudulent filings to the SEC, according to a commission press release.
BF Borgers agreed to pay a $12 million civil penalty and owner Benjamin Borgers agreed to pay a $2 million civil penalty to settle the charges, according to the SEC.
Trump Media began trading publicly in late March after a completed merger with Digital World Acquisition Corp. Prices opened rose as high as $79 a share, then plummeted as news broke that Truth Social lost $58 million in 2023.
DJT prices were hovering just over $41 as of Monday afternoon, Yahoo Finance data show. Trump Media currently holds an approximately $7.5 billion market capitalization, according to CNBC.
That, critics say, "is wildly disproportionate to the small amount of revenue the company has reported earning," the report concludes.
"Data show that the company’s sole product, Truth Social, appears to be struggling to hold onto its user base, which already generates just a tiny fraction of the traffic enjoyed by established social media giants like X and Facebook."