Former President Donald Trump’s financial standing has suffered a notable blow following Vice President Kamala Harris’s entry into the 2024 presidential race. According to a CNN report released on August 1, 2024, Trump has seen a staggering $900 million loss since Harris announced her candidacy on July 21, after President Joe Biden withdrew from the race.
The significant drop in Trump’s fortune is largely attributed to the falling value of his investment in Truth Social, the conservative social media platform operated by Trump Media & Technology Group (TMTG). Since Harris’s announcement, TMTG’s stock price has plunged by approximately 23%, including a sharp decline on Thursday amid a broader market selloff.
Prior to Biden’s departure and Harris’s endorsement, Trump’s substantial stake in TMTG was valued at just over $4 billion as of July 19. This value has since diminished to about $3.1 billion. This downturn reflects market apprehension regarding the 2024 election dynamics, as polls suggest a tight race between Trump and Harris.
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Truth Social has become a focal point for Wall Street traders who speculate on Trump’s political future, betting that a Trump victory could elevate the platform’s status. Despite its high-profile backer, Truth Social has struggled to establish itself in the crowded social media market.
Data from Comscore, analyzed by TheRighting, reveals a 38% year-over-year drop in Truth Social’s unique visitors in June, marking the platform’s third consecutive month of declining engagement. This stagnation contrasts with the initial surge in user interest following the platform’s launch.
Although Trump Media’s share price saw brief boosts following a controversial debate performance by Biden and an attempted assassination in Pennsylvania, these increases proved unsustainable. Since its public debut in late March, Trump Media’s stock has experienced high volatility, driven more by political hype than by solid financial performance.
Experts have categorized Trump Media as a “meme stock,” with its value fluctuating based on news cycles and investor sentiment rather than actual revenue and profit. Despite Trump’s prominent role as chairman and primary user on Truth Social, the company’s financial prospects remain uncertain.
Bloomberg currently estimates Trump’s net worth at $5.9 billion, while Trump Media is valued at $5.1 billion. However, this valuation is increasingly seen as inflated due to the platform’s limited revenue and user base, falling far behind industry giants like X and Facebook.
As Harris gains momentum in the polls, Trump faces increasing pressure on both his business and political fronts. The 2024 race is shaping up to be a fiercely contested battle, with both candidates leveraging their platforms to rally supporters and sway undecided voters.
