Former President Donald Trump has recently encountered a substantial setback with his social media venture, Truth Social, suffering a significant financial blow. As reported by Newsweek on Tuesday, June 18, 2024, Trump’s company saw a staggering loss of $267,367,500 in market value due to a sharp decline in its stock price.
The decline amounted to 6.29 percent in just one day of trading, impacting Trump’s financial portfolio significantly. Truth Social, launched in February 2022 as an alternative to mainstream platforms following Trump’s ban from major social media networks, has since been a focal point of his communication strategy.
The company’s journey into the public market was facilitated through a merger with Digital World Acquisition Corp., allowing Truth Social’s parent company, Trump Media & Technology Group (TMTG), to go public. However, the stock has proven highly volatile since its debut.
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As of June 18, 2024, the price per share of Truth Social, traded under the ticker “DJT,” fell to $34.72, marking a notable decline from previous highs. Earlier dips had seen the stock briefly fall below $40 per share, reflecting a turbulent market reception.
Trump, who holds nearly a 65 percent stake in TMTG, has seen his fortunes tied closely to Truth Social’s performance. Recent disclosures show that he holds 114.75 million shares, further amplifying the impact of the stock’s decline on his personal wealth.
Matthew Tuttle, CEO of Tuttle Capital Management, confirmed to Newsweek the extent of Trump’s financial loss, highlighting the precarious nature of investments tied to Truth Social amid its erratic stock performance.
Todd Landman, a political science professor at Nottingham University, described Truth Social’s shares as presenting significant risks to investors due to their volatility. He noted that while there may be potential for gains in the future, the current swings in value underscore the uncertainty surrounding the company’s financial outlook.
In addition to stock market challenges, TMTG reported a substantial net loss of $327.6 million for the first quarter of 2024, largely attributed to non-cash expenses related to the merger with Digital World Acquisition Corp. This financial strain has compounded following legal issues faced by Trump, including recent convictions that have further impacted Truth Social’s standing in the market.
Despite these setbacks, the future of Truth Social hinges on its ability to attract more users and diversify its content offerings. Analysts suggest that ongoing developments, including potential shifts in user engagement and market sentiment, will play a crucial role in shaping the company’s trajectory moving forward.
As Truth Social navigates these challenges, the broader implications for Trump’s business ventures and his personal finances remain a topic of keen interest and scrutiny in both financial and political circles.
