Trump Media & Technology Group (DJT) saw its stock price plummet 7.22% in pre-market trading on Friday, continuing its volatile performance since going public in March 2024. The sharp decline comes as investors grapple with recent developments and the speculative nature of the company's future prospects.

The pre-market plunge follows a recent Securities and Exchange Commission (SEC) filing by the company, which permits a trust led by former President Donald Trump to potentially sell almost 115 million shares, currently valued at approximately $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's stock has been on a rollercoaster ride since its public debut, initially soaring from $10 to $233 in just two days before experiencing significant declines. The company, which owns the social media platform Truth Social, faces stiff competition in the social media space and has yet to turn a profit. With a trailing 12-month loss of $3.97 per share and a market capitalization of $4.47 billion, the stock's value is largely based on future earnings potential and investor sentiment, making it particularly susceptible to market fluctuations and news events. As the volatile trading continues, financial experts caution about the high-risk nature of investing in individual stocks, especially those in the competitive and rapidly evolving social media sector.