Trump Media & Technology Group (DJT) saw its stock price plummet 5.59% in pre-market trading on Friday, continuing its volatile performance in recent weeks. The company, which owns the social media platform Truth Social, has been facing significant challenges as investors grapple with its speculative nature and lack of profitability.

The pre-market drop follows a recent 5% decline after the company filed with the Securities and Exchange Commission (SEC) to permit a trust led by former President Donald Trump to sell almost 115 million shares, currently valued at around $2.3 billion. Although the company stated it had no immediate plans for such a sale, the mere possibility has rattled investors, contributing to the stock's instability.

DJT stock has experienced extreme volatility since going public in March 2024, initially soaring from $10 to $233 in just two days. However, the company's share price has since struggled, with a year-to-date decline of nearly 44%. As a non-profitable entity, DJT's stock value is largely based on future earnings potential and investor sentiment, making it particularly susceptible to market fluctuations and news events. Financial experts continue to caution about the high-risk nature of investing in individual stocks, especially those in the volatile and competitive social media sector.