Former President of the U.S, Donald Trump, lost more than $160 million in his empire on Tuesday. This came after the stock prices of Trump Media & Technology Group plummeted to prices not seen since the company went public in March this year. Trump holds the majority stake of the firm which owns Truth Social, a social media application.
This decline however represented a 4% decline of the Trump’s wealth effectiveness as his net worth was reduced to $3.9 billion. This new figure enables him to be the 851st person in the world ranking according to billionaires wealth. Shares of Trump Media haveFinished at 18.08 dollars, falling,80 percent in 68 over its debut price after being listed on the Nasdaq stock exchange.
Not only Tump’s company plunged on that Tuesday. The social media markethead was also having its worst day in terms of trading for more than a month after the calendar turned to August 5, with all three major indices in the U.S falling as well, and social media companies including Reddit and snap also following the trend. The share value of Reddit fell -4 % and that of Snap declined 5 percent.
Trump Media’s Volatile Stocks
On March 26, Trump Media had the opportunity to goes public, with its shares classified under the volatile the volatile’ meme stocks worldwide. This consists o f shares that are trending outside the Wall Street stock exchange, growing due to social media and rather going up or down depending on the trends o f social media than the company’s profits or productivity. Most of the factors which contributed to the August 12 fall were the poor earnings from Trump Media and the return of Trump to X once he was on long absence.
Trump’s account on the social media called Twitter X was blocked after the attack on January 6, 2021 but it was restored after Elon Musk purchased the said social media platform. However, reportedly, upon his comeback, Trump made one post on X and has been either silent or using Truth Social predominantly.
Since September 25, 2022, he will be free to start selling the shares of the company but he has given no indications that he plans selling them. It was January 2021 after trump’s defeat as president and the banning from Facebook and Twitter that he founded Trump Media.
The Truth social app, which is their flagship product, is very much a clone of X. In terms of personal accounts, Trump Media states the there are approximately 9 million users, however the analytics company SimilarWeb has noticed that the site had about 5 million monthly visits in February. X had 104 Million monthly visits in the same period while the figures out for X had about 104 Million monthly visits in the same duration.
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