Atlanta, Georgia – Shares of Truth Social owner Trump Media & Technology Group experienced a significant drop of 12% on Friday, reaching their lowest point since the company’s recent initial public offering.
The decrease in share value has led to a loss of nearly $2 billion in the value of former President Donald Trump’s stake in the company this week. Initially, Trump Media shares soared to a high of $79.38 on the first day of trading on the Nasdaq under the ticker symbol “DJT.”
However, since that peak, the share price of Truth Social owner has plummeted by 49%, closing at $40.49 on Friday. This decline marks a loss of about a third of their value for Trump Media’s shares this week, despite seeing an increase of more than 130% in value over the course of the year.
Trump’s personal stake in the company has also taken a hit, now valued at approximately $3.2 billion – a significant decrease from $4.9 billion just the previous week. The company recently disclosed a loss of $58 million last year, with minimal revenue of $4.1 million, raising concerns among experts regarding the overvaluation of Trump Media by Wall Street.
Billionaire chairman of Expedia and People Magazine owner IAC, Barry Diller, criticized Trump Media, labeling it as a “scam” and suggesting that those investing in the stock are making a foolish decision. Diller emphasized the lack of revenue generated by the company, questioning its current valuation.
In response to the criticism, a Trump Media spokesperson defended the company, stating that it is not surprising to see detractors lash out now that Truth Social has become a public platform that upholds freedom of expression, even when it contradicts certain narratives.