New York, USA – Donald Trump’s media and technology group, DJT, has experienced a significant decline in its value since its public trading debut on March 22, dropping the former president’s stake to approximately $2.8 billion. As of Monday afternoon, DJT’s stock price has fallen by about 36% since its peak on March 27, currently priced at around $36. Despite the drop, market analysts caution against drawing concrete conclusions due to the stock being highly shorted on the Nasdaq exchange.
Moreover, the value of Trump’s social media company remains stagnant since its merger under a special-purpose acquisition company (Spac) deal with shell company DWAC earlier in March. Initially, DWAC’s value surged following its public trading launch, briefly boosting Trump’s paper wealth to over $6 billion. However, with minimal revenue and no profits to show, the company’s true financial strength is under scrutiny.
Investors who initially supported Trump through buying DJT shares amidst his bid for a second presidency in November are now swiftly divesting. Trump, on the other hand, is unable to cash out due to a lockup agreement that mandates him to hold onto his shares until September. Legal troubles surrounding the company and its executives further compound issues, with ongoing SEC investigations into DWAC and criminal charges against an executive for insider trading.
In a post on his Truth Social platform, Trump remains optimistic about DJT’s prospects, touting its potential success despite the current turbulence. The platform, designed to combat perceived censorship in mainstream media, faces challenges but Trump and Truth Social’s CEO, former US congressman Devin Nunes, express confidence in its future. Nunes highlights the company’s debt-free status and ample cash reserves as promising factors for expansion and platform improvement, aiming to establish Truth Social as a premier free-speech platform for Americans.