Trump’s Net Worth Plummets $1B as Truth Social-Linked Stock Crashes

Former President Donald Trump’s financial fortunes took a notable hit on Monday as the stock of his social media venture, Trump Media, experienced a sharp decline following the release of its latest financial report. The company’s performance fell well short of expectations for a company of its size, leading to a significant drop in Trump’s net worth.

The decline in Trump’s wealth can be attributed to the poor performance of Trump Media’s stock, which saw a steep drop in value during Monday’s trading session. The stock, which is traded under the ticker symbol $DJT, lost around 20% of its value, closing at approximately $49 per share. This marked a significant decrease from its peak of $79 per share, which was reached last Tuesday when the company made its debut as a publicly traded company.

As a result of the stock’s decline, Trump’s stake in Trump Media also suffered. Trump currently owns 78.5 million shares of the company, representing about 57% of all outstanding shares. The value of his stake in the company dropped from a peak of $6.25 billion to $3.86 billion on Monday.

The decline in Trump Media’s stock price came after the company released its full-year 2023 financial results for the first time. The report revealed that the company had generated full-year revenues of $4.1 million but had incurred a net loss of $58.2 million. Fourth-quarter sales were reported to be approximately $750,000.

The disappointing financial results have raised questions about the valuation of Trump Media, which currently stands at $6 billion. This valuation is significantly higher than that of other social media companies such as Reddit and Snap, which have price-to-sales ratios of 9 and 4, respectively. Many experts have likened Trump Media to a meme stock, drawing comparisons to the surges seen in stocks like AMC and GameStop in 2021.

Trump Media’s public debut came last week through a reverse merger with Digital World Acquisition Corp., a deal that was first announced more than two years ago. Despite the initial excitement surrounding the merger, with shares of the company surging as much as 40% in their debut on the Nasdaq stock exchange, the company’s lackluster financial performance has cast a shadow over its future prospects.