Shares of Trump Media & Technology Group, the company behind the social media platform Truth Social, plunged for a second straight day on Monday.
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Shares of Trump Media & Technology Group, the company behind the social media platform Truth Social, plunged for a second straight day on Monday.
Scott Olson/Getty Images
About two weeks after its meteoric debut, Truth Social’s stock collapsed, wiping out billions of dollars of value in former President Trump’s stake.
Shares of Trump Media & Technology Group – the company behind Truth Social – fell 8% on Monday after already losing 12% on Friday.
It is now trading at its lowest level since the company’s March 26 debut. Trading has been remarkably volatile since its inception, with some significant swings.
The sharp declines of the past two days will significantly reduce Trump’s paper gains.
The former president owns a majority stake in the company and his stake was valued at about $2.9 billion as of Monday, down from a high of more than $6 billion following its stock market debut.
That’s still an eyebrow-raising valuation for the former president’s stake, given that Trump Media lost $58 million last year and had revenue of just over $4 million. dollars.
Under his current agreement, Trump is not allowed to sell his shares until September, but he can ask the Trump Media board for permission to divest part of his stake sooner.
The board is made up of people Trump knows well, including his son, Donald J. Trump Jr., and former administration officials.
Analysts had warned that Trump Media’s stock was trading completely without regard to its actual financial health.
But the stocks are backed by thousands of individual investors, many of whom are considered staunch Trump supporters.
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