New York, NY – Following a significant decline in the stock price of Trump Media, the parent company of former President Donald Trump’s social media platform Truth Social, Trump’s net worth has also taken a hit. The company’s shares have experienced a sharp drop, with a 12% decrease on Friday, an 8% drop on Monday, and an additional 2% decline on Tuesday, trading at $36.35 per share. This marks a decrease of over 50% from its peak value of $79.38 in late March.
As a result of the stock price plummet, Trump is no longer included in the Bloomberg Billionaires Index, a daily ranking of the world’s wealthiest individuals. The decline in Trump Media’s stock has led to billions of dollars being wiped out from the company’s market value, dropping from an estimated $8 billion after its recent stock market debut to approximately $5 billion as of Monday evening.
It is worth noting that Trump owns around 60% of Trump Media, with 78.75 million shares, which initially valued his stake at approximately $6 billion after the company went public. However, with the recent volatility in the stock price, the value of his stake has decreased to around $3 billion as of Monday afternoon. Despite this, Trump is unable to sell his shares until September without approval from the Trump Media board.
While Trump’s net worth has seen a significant decrease, currently estimated at $4.7 billion according to Forbes, the valuation of Trump Media, at $5 billion, still remains relatively high for a company that experienced operating losses of over $58 million in 2023. Investors have expressed concerns about the company’s overvaluation compared to other social media platforms, especially considering the warning issued by an auditing firm regarding Trump Media’s ability to continue operating given its substantial losses.
Despite the challenges, Trump has defended the company on Truth Social, expressing confidence in its stability and growth potential. He emphasized the platform’s effectiveness and future prospects, indicating his commitment to its success. The future of Trump Media and Truth Social remains uncertain amidst the ongoing fluctuations in the company’s stock price and market value.