On Thursday, economist Peter Schiff said Trump Media & Technology Group Corp.’s (NASDAQ:DJT) steep share-price decline should serve as a cautionary tale for investors betting on hype-driven stocks rather than business fundamentals.

Schiff Warns Trump Media’s Stock Collapse Reflects Risks

Schiff criticized Trump Media after its shares fell 6.12% to a record closing low of $7.06 on Thursday, extending a prolonged decline.

In a post on X, Schiff wrote, “$DJT is down another 6% today, hitting a new all-time low. It’s down 60% in the past year. The stock is down 96% from its all-time high.”

Calling the decline “yet another example of the dangers of jumping on bandwagons to buy overpriced assets,” Schiff added that it is “a harbinger of what’s to come.”

$DJT is down another 6% today, hitting a new all-time low. It's down 60% in the past year. The stock is down 96% from its all-time high. This provides yet another example of the dangers of jumping on bandwagons to buy overpriced assets, and is a harbinger of what's to come!

— Peter Schiff (@PeterSchiff) June 25, 2026

While the catalyst behind Thursday’s selloff remains unclear, Trump Media’s shares have remained under pressure amid repeated quarterly losses and concerns over the company’s financial performance.

Trump Media Continues To Post Losses Despite $2 Billion Market Value

Trump Media reported a net loss of $405.9 million for the first quarter of 2026 after posting a full-year 2025 net loss of $712 million.

A significant portion of last year’s losses stemmed from unrealized declines tied to cryptocurrency, digital assets and equity securities.

The company’s core business remains modest. Advertising on Truth Social generated just $3.7 million in revenue during 2025, even as Trump Media’s market capitalization remains just under $2 billion.

Trump Media debuted on the Nasdaq in 2024 at $70.90 per share. After dropping to roughly $13 within six months, the stock rebounded to around $40 near President Donald Trump’s inauguration before sliding to fresh lows this week.

The stock’s decline has also weighed on Trump’s personal wealth. According to Forbes estimates, his net worth stood at $5.9 billion on Thursday, down about $700 million since the start of the year.

According to Benzinga Edge Stock Rankings, Trump Media shares remain in a bearish trend across the short, medium and long-term time frames.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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