Trump’s Net Worth Falls $163M as Media Stock Hits Low

Former President Donald Trump faced a substantial reduction in his net worth on Tuesday, with a notable decrease of over $160 million. This sharp decline was primarily driven by a significant drop in the stock price of Trump Media and Technology Group Corp. (TMTG), which fell to its lowest closing value since the company’s public debut in March. The loss equates to nearly 4% of Trump’s net worth, bringing it down to approximately $3.9 billion by the end of the trading day. This positions him as the 851st wealthiest individual, reflecting the impact of the stock’s poor performance on his financial standing.

Trump Media, which trades under the ticker DJT, saw its shares close at $18.08 on Tuesday, representing a dramatic 68.82% decline from its initial public offering (IPO) price. The company’s stock debuted on the Nasdaq exchange in late March following its merger with Digital World Acquisition Corp., a special-purpose acquisition company (SPAC). This closing price marks a significant deterioration from the previous record low of $19.50, which was set on Friday. The sharp drop in stock value underscores ongoing challenges for Trump Media, which has struggled to maintain investor confidence.

The difficulties faced by Trump Media are part of a broader decline in U.S. stock markets. Tuesday proved to be especially challenging, with all three major U.S. stock indexes experiencing their worst performance since August 5. This downturn affected various sectors, including social media platforms, with Reddit and Snap both seeing declines of 4% and 5%, respectively. The broader market trends highlight a period of increased volatility and uncertainty affecting multiple industries.

Trump Media went public on March 26 following its merger with Digital World Acquisition Corp., and the company’s share price exhibited considerable volatility during the period between the merger announcement in 2021 and its completion. Although the stock price often settled below $20 before the merger, Trump Media managed to maintain a closing price above this level until last Thursday. The company is frequently categorized as a highly volatile “meme stock,” a term for shares that experience significant price fluctuations based on social media buzz and non-earnings-related news. Trump Media’s volatility was further exacerbated by a substantial drop on August 12, attributed to two major factors: a disappointing earnings report revealing lower-than-expected revenue and Trump’s return to X, formerly known as Twitter, after a nearly three-year absence. Trump had been banned from X following the January 6 Capitol riot, but his account was reinstated in 2022 after Elon Musk acquired the platform. Despite being allowed back on X, Trump had made only a single post and continued to primarily use Truth Social.

The future of Trump Media remains uncertain, particularly concerning whether Trump will sell his stake in the company once the lock-up restrictions expire later this month. These restrictions, which prevent company executives and insiders from selling their shares for a set period following an IPO, are scheduled to end on September 25. Although Trump has not publicly indicated any intention to divest his holdings, the expiration of these restrictions could have significant implications for the stock’s performance and market sentiment.

Currently, Trump Media & Technology Group has a market capitalization of $3.57 billion, reflecting substantial market interest and investment despite the company’s recent difficulties. The future trajectory of Trump Media will depend on its ability to stabilize its stock price, effectively manage its expansion into new markets such as streaming TV, and regain investor confidence amid a challenging market landscape. As the company navigates these uncertainties, its performance in the coming weeks will be closely watched by investors and analysts alike.