Los Angeles, California – Donald Trump’s media and technology group, DJT, has experienced a significant decrease in value since it started publicly trading on March 22, resulting in a drop in the former president’s stake to approximately $2.8 billion. The stock has been highly shorted, with traders betting on the company’s decline, leading to a valuation of $3 billion for Trump’s stake.
As of Monday, DJT stock was priced at around $36, marking a decrease from its peak of $66 on March 27. Market analysts caution that it is premature to draw definitive conclusions from the stock depreciation due to it being one of the most actively shorted on the Nasdaq exchange.
The value of Trump’s social media company is now back to its pre-merger levels when Trump Media combined with shell company DWAC in a special-purpose acquisition company deal earlier in March. While DWAC, now renamed DJT, initially saw a surge in value following its public trading debut, Trump’s fortune on paper reached over $6 billion before plummeting.
Investors initially showed support for Trump’s campaign for a second presidency by acquiring DJT shares, despite the former president facing numerous criminal charges, civil penalties, and legal disputes. However, some are now quickly selling off their DJT shares.
Trump is currently under a lockup agreement that prevents him from cashing out his shares until September. The company and some executives are facing legal challenges, including an SEC investigation into DWAC and insider trading accusations against one executive.
Additionally, two former contestants from Trump’s reality TV series, The Apprentice, have filed lawsuits against him, alleging plans to diminish their stakes in the company. Trump has countersued, disputing their entitlement to shares.
Despite the challenges, Trump remains optimistic about the future success of DJT’s Truth Social platform, aimed at countering perceived censorship in mainstream media. The platform’s CEO, former US congressman Devin Nunes, expressed confidence in the company’s prospects, highlighting its lack of debt and substantial funds for expansion.
Nunes emphasized plans to leverage these opportunities to establish Truth Social as a premier free-speech platform for the American people.