Former President Donald Trump’s social media company, Trump Media & Technology Group (TMTG), is amid several financial slumps, which have significantly damaged his net worth. TMTG, which owns the social media platform Truth Social, was launched as a competitor of major tech giants Twitter and Facebook. It is now struggling to stand in the market, leading to mounting financial challenges.
Truth Social was created as a platform for free speech, appealing largely to audiences who felt censored on mainstream social media. Despite the initial social buzz, the platform faced numerous setbacks, including low engagement, technical issues, and difficulties securing long-term investors.
Shares of the TMTG group dropped last week to the lowest level since the merger that brought the owner of Truth Social public this spring. On Monday, Trump lost nearly a quarter (72%) of its value since peaking at $66.22 on March 27.
Trump’s dominant stake of 114.75 million was valued at $6.2 million in May, and it’s now down to about $2.1 billion. This sharp drop also impacted Trump’s ranking in the Bloomberg Billionaires Index of the world’s 500 richest people.
Beyond Trump Media’s weak fundamentals, analysts said several factors caused Trump to lose a large number of shares. Matthew Tuttle, CEO of Tuttle Capital Management, said President Kamala Harris is neck and neck with Trump in some polls, which is a major catalyst. The looming expiration of the lock-up period prevents Trump and other insiders from selling their shares. Experts said it would be difficult for Trump to sell all or even most shares without crashing the stock.
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Trump launched Truth, a TV streaming platform for Truth Social on iOS, Android, and the Web. Let’s see what happens next.
