Trump Media Stock Hits New Low, Trump’s Net Worth Drops

Shares of Trump Media and Technology Group (TMTG) have experienced a significant drop, closing just above $20 for the first time since the company’s public debut. This represents the lowest stock price since the company went public via a merger in March. The decline marks a continuing downward trend for the Truth Social parent company, which saw its stock price end the day at $20.10. Despite this slight recovery, former President Donald Trump’s net worth has plummeted by approximately $102 million.

As of the market close on Wednesday, TMTG’s stock traded at $20.10, reflecting a dramatic 65.34% decrease from its initial public offering (IPO) price when it first listed on the Nasdaq exchange on March 26. The company’s IPO came about through a merger with a special-purpose acquisition company (SPAC). Trump, who owns 59% of Trump Media, holds shares valued around $2.2 billion, according to CNBC. This stake represents more than half of his estimated net worth.

The Trump Media & Technology Group Corp., currently valued at a market capitalization of $3.94 billion, has faced a consistent decline in its stock price since June. The drop intensified earlier this month following the release of an earnings report that showed alarmingly low revenue figures. The company’s financial struggles have compounded its volatility, as it navigates a challenging market environment.

Trump Media, which operates the Truth Social platform and has plans to expand into streaming TV, became a publicly traded entity on March 26 after merging with Digital World Acquisition Corp., a blank-check company. This long-anticipated merger was initially announced in 2021 and was marked by fluctuating stock prices as investors awaited its completion. Digital World’s shares remained below $20 for much of the previous year. Since its debut, Trump Media has been characterized as a highly volatile “meme stock,” subject to price fluctuations driven by factors beyond traditional earnings reports. Market observers have linked the company’s stock movements to political developments, including speculation about Trump’s prospects in the upcoming presidential election. The latest significant decline in the stock price on August 12 was influenced not only by the poor earnings report but also by Trump’s return to X, formerly known as Twitter. Trump’s return to X, owned by billionaire Elon Musk and a competitor to Truth Social, was his first significant activity on the platform in nearly three and a half years.

The last time TMTG’s stock closed below $20 was on January 12, when it was priced at $17.32, before the merger with Digital World was finalized. Since then, the stock’s performance has been marked by volatility and significant fluctuations. As of the latest data, Trump’s estimated net worth stands at $4.2 billion, making him the 807th richest person globally. This valuation includes his holdings in Trump Media, as well as his extensive real estate portfolio and other assets. The decline in TMTG’s stock value has directly impacted Trump’s financial standing, reflecting the broader challenges facing the company.

One of the key factors to watch in the coming months is whether Trump will sell a portion of his stake in Trump Media. Currently, he is restricted from selling his shares due to a six-month lock-up period, which is set to expire on September 25. The expiration of this restriction could lead to significant developments if Trump decides to divest any of his holdings. In summary, Trump Media’s stock has hit a new low, mirroring the broader financial difficulties faced by the company. The decline in share value has had a substantial impact on Trump’s net worth, highlighting the volatility and challenges inherent in the market dynamics surrounding Trump Media. As the company continues to navigate these challenges, all eyes will be on potential shifts in Trump’s investment strategy and the company’s future performance.