Literally everybody saw this coming.
Laughing Stock
Shares for Donald Trump’s social media business went into freefall on Monday, tumbling well over 20 percent in a single day — which, as Bloomberg reports, wiped out acool $1 billion of the former president’s net worth.
The share price of Trump Media & Technology Group, which owns the far right-wing social media platform Truth Social, even dipped below its original offering price of $49.95 when it merged with a blank-check acquisition company last week.
Trump, who owns 57 percent of the faltering business, after the disastrous day now has a $3.76 billion stake in the company — which is still pretty ludicrous considering TMTG generated a measly $4.1 million for all of 2023.
In other words, even after its major tumble this week, the meme stock is still massively overvalued and likely nothing more than an eleventh-hour attempt to raise some desperately needed funds for Trump’s re-election campaign.
Stump the Trump
The crash this week was widely predicted by experts. After all, it’s still unclear what TMTG even brings to the table. Truth Social has been cagey about its number of active users, and Securities Exchange Commission documents released on Monday may shed light on why.
The company lost more than $58 million in 2023 while only netting $4.1 million in revenue. Parent company TMTG paid out $40 million in interest alone, netting a $16 million operating loss.
In other words, it’s no wonder investors are balking at TMTG’s dubious valuation — and the shoe was bound to drop at some point.
If there’s one thing we’ve come to expect about the chaotic Trump, it’s going to hold firm for Truth Social as well: expect drama.
More on the merger: Trump’s “Truth Social” Stock Is Already Crashing
Share This Article