Days after its public debut, the value of DJT, the stock associated with Truth Social, former President Trump’s social media platform, experienced a significant drop.

Less than a week after its public trading debut under the DJT ticker, shares of Donald Trump’s social media company witnessed a drastic decline of over 20% on Monday. This downturn followed a revelation from Trump Media & Technology Group indicating a loss of nearly $60 million in the previous year, coupled with meager revenue of around $4 million. As a result of this drop, former President Trump’s net worth reportedly decreased by $1 billion, according to Bloomberg. Despite a promising start last week, during which the company reached an $11 billion valuation, experts cautioned that a stock plunge was imminent, primarily due to the struggles faced by its main product, Truth Social, in retaining users and managing finances.

The sudden surge in stock price drew parallels to the “meme stock” phenomenon observed during the pandemic era, where companies like GameStop and AMC experienced significant price increases despite fundamental weaknesses in their businesses. Meme stocks typically gain popularity on social media platforms, prompting enthusiastic online investors to drive up share prices. On Monday, shares of Trump Media, reliant solely on advertising revenue from Truth Social, fell to $48.66, marking a significant decrease from previous highs but still reflecting an overall increase of nearly 200% since the beginning of the year.

Investors, largely small-time, seem to be rallying behind the former president amidst his legal battles, contributing to the surge in stock value. However, they are betting on a company that, as revealed in a special filing on Monday to the Securities and Exchange Commission (SEC), anticipates continued operating losses and negative cash flows in the foreseeable future. With Trump Media incurring substantial interest expenses and operating losses in 2023, doubts linger regarding its financial stability, as acknowledged by the company itself.

Truth Social was launched in February 2022, positioning itself as an alternative to mainstream platforms after Trump’s ban from Twitter and Facebook following the Capitol riot. While Trump remains active on the platform, it has struggled to attract a wide audience, with estimates suggesting significantly fewer active users compared to competitors. Despite claims of around 8.9 million sign-ups, Truth Social has refrained from disclosing key performance metrics, leaving shareholders in the dark about its operational performance.