New York CNN — Former President Donald Trump’s social media company is in a deep slump that keeps getting worse, wiping out a huge chunk of his net worth.
Shares of Trump Media & Technology Group (DJT) dropped last week to their lowest level since the merger that brought the owner of Truth Social public this spring.
Trump Media has lost about three-quarters (74%) of its value since peaking at $66.22 on March 27.
The selloff has erased significant amounts of wealth for investors — including Trump.
Trump’s dominant stake of 114.75 million shares was valued at $6.2 billion on May 9. It’s now down to about $2 billion, a sharp drop that has knocked Trump off the Bloomberg Billionaires Index of the world’s 500 richest people.
The wipeout reinforces concerns raised by experts who have repeatedly warned that Trump Media’s multi-billion-dollar price tag defies logic. The company is losing money, generating very little revenue and Truth Social remains a relatively tiny player in social media.
“If this wasn’t Trump, this thing would be trading at $1,” Matthew Tuttle, CEO of Tuttle Capital Management, told CNN in a phone interview.
In April, billionaire Barry Diller told CNBC that people who buy Trump Media stock are “dopes.” In June, LinkedIn co-founder Reid Hoffman told CNN that Trump Media is valued “absurdly out of the realm of normal.” Both Diller and Hoffman are Democratic megadonors.
R&I ~ MJM
Enterprise7
Article URL : https://www.cnn.com/2024/09/09/business/trump-stock-truth-social/index.html