In a tumultuous week for Trump Media, the company's stock prices plummeted nearly 20%, causing significant losses in market capitalization. The shares of DJT, the parent company of Truth Social app, experienced a downward trend throughout the week, with an initial drop of over 8% within the first hour of trading on Friday.

Despite the challenging start, DJT managed to salvage a slight gain by the end of the day, with shares closing up 18 cents at $32.59, representing an increase of approximately 0.5%. However, this closing price stood significantly lower than the initial public trading price of $70.90 per share back on March 26.

The decline in Trump Media's stock prices has been staggering, with shares dropping by 47.4% throughout April alone. As a result, billions of dollars in market value have been wiped out, leaving the company with a market capitalization of $4.45 billion - a staggering $5 billion lower than the peak it achieved only two weeks ago.

Former President Donald Trump, the biggest shareholder in Trump Media, owning nearly 60% of the stock, faces a separate challenge as he prepares for his upcoming criminal trial in Manhattan Supreme Court. The trial centers around allegations of falsifying business records related to a hush money payment made to adult film actress, Stormy Daniels, in 2016.

Trump Media's market performance has sparked interest from short sellers, who have made significant trades betting on further drops in the stock price. As of this week, the so-called short interest in DJT stood at $208.7 million, with 5.44 million shares shorted. It is worth noting that there are fewer than 100,000 shares of Trump Media available for borrowing and selling short.

The company's revenue for the past year amounted to just $4.1 million, resulting in a substantial net loss of $58 million. This, combined with the relatively high stock price, has raised concerns among investors and traders alike.

Recent developments have impacted the financing costs associated with short trades for Trump Media. Just last week, traders were faced with exorbitant annual financing costs of up to 900%. However, these costs have since fallen to around 200%, providing some relief to short sellers.

Looking ahead, Trump Media faces a challenging road ahead as it seeks to gain stability in the market and recover some of the losses incurred in recent weeks. With ongoing legal proceedings surrounding the company's largest shareholder, and a sharp decline in stock prices, the future remains uncertain.

Disclaimer: The above article is based on existing information available and does not represent financial advice. Readers are advised to conduct their own research and consult with a financial advisor before making any investment decisions.