After a highly anticipated debut on the Nasdaq last week, Donald Trump's media and technology group, Trump Media & Technology Group, experienced a considerable decline in its share price on Monday. This downturn came after the company released its post-merger financial statements, revealing concerning details about its business.

The parent company of social media platform Truth Social saw its value drop as much as 27 percent by lunchtime, opening at $61.92. The regulatory filing with the Securities & Exchange Commission disclosed that in 2023, the company generated a modest revenue of $4.1 million but suffered significant net losses of $58.2 million. In contrast, Trump Media reported profits of $50.5 million in 2022.

The drastic shift in stock performance came just days after Trump Media began trading on the Nasdaq under the ticker symbol DJT. The shares had initially reached a high of $79 per share on Thursday but plummeted to around $47 before staging a minor recovery, closing at $48.66. The decline amounted to a 21.47 percent decrease in value for the day.

Industry analysts have drawn comparisons between the enthusiasm surrounding Trump Media and the meme stock craze witnessed in 2021. Notably, struggling companies such as GameStop and AMC Entertainment experienced exponential growth in their stock prices during this phenomenon. On Monday, both GameStop and AMC saw their shares slide, with decreases of over 7 percent and 11 percent, respectively. Additionally, Reddit, another recently-publicized company associated with meme stock frenzy, dropped over 6 percent.

Research firm Similarweb provided insights into Truth Social's traffic, reporting approximately 5 million monthly visits in February 2023. In comparison, Facebook recorded a staggering 15.2 billion visits, while Reddit saw 2 billion visits during the same period.

The regulatory filing acknowledged that Trump Media may face greater risks than typical social media platforms due to its focus and the involvement of President Trump. The company cited risks such as advertiser harassment and criticism of Truth Social's moderation practices. Furthermore, potential declines in user numbers or engagement, including the loss of high-profile individuals and content generators on the platform, could negatively impact advertiser interest and harm the company's business and operating results.

The filing also confirmed that stakeholders, including former President Trump, have a six-month lockup period preventing them from selling or transferring shares. This stipulation, commonly used to instill confidence in the company's future, aims to avoid signaling any internal collapse or lack of faith.

Donald Trump established Truth Social in response to his suspension from Facebook and Twitter following the January 6 Capitol riot in 2021. The company's stock trajectory moving forward will play a crucial role in determining its long-term success and the potential profitability for stakeholders, including the former president.