Donald Trump's net worth plunges 1 Billion USDTop Stories

April 02, 2024 20:02
Donald Trump's net worth plunges 1 Billion USD

After a successful initial public offering on the Nasdaq, Donald Trump's Truth Social has experienced a significant decline in the stock market. Trump Media & Technology Group, the parent company of Truth Social, has seen a 21.5% drop in its shares as investors scrutinize its business fundamentals. This decline has also had a negative impact on Trump's stake in the company, resulting in a loss of over $1 billion. The company's financial struggles were further highlighted by its disclosure of a $58.2 million loss last year, which led its auditor to express doubts about its ability to remain operational.

Last week, Trump's stake in the company was valued at around $4.88 billion. However, following the recent market decline, its value has decreased to approximately $3.83 billion. Initially, the stock had a strong start, with a 30% increase on its first day of trading, making Trump's shares worth over $5.2 billion. Unfortunately, this enthusiasm was short-lived, as the stock experienced a 6% decline last Thursday and an additional 21% decline on Monday, resulting in a decrease in the former president's stake to $3.8 billion. Despite an increase in sales to $4.13 million in 2023 from $1. The financial data from 2022 reveals the limited size and significant losses of Trump Media's operations. In their recent filings, BF Borgers of Colorado expressed doubts about the company's ability to continue operating. Trump Media acknowledged the higher risks they face compared to other social media platforms due to their unique offerings and the involvement of President Trump.

Devin Nunes, the CEO of Trump Media, expressed his excitement about the company's status as a public company. He highlighted the positive financials related to the merger, stating that Truth Social currently has no debt and over $200 million in its bank account. This financial stability opens up various possibilities for expanding and improving their platform. Since the start of the year, both Trump Media and Digital World Acquisition, the company they merged with, have experienced a surge in their share prices. As a result, their valuation is now comparable to that of Reddit, a recently public social network. In 2023, Reddit reported sales of $804 million but also suffered losses of $90.8 million. In comparison, Trump Media's net losses for the same year amounted to $58.2 million. Trump Media saw a small increase from $23.2 million in 2022. Similar to GameStop, Trump Media has become a meme stock, driven by internet memes on platforms like Truth Social, which encourage retail investors to invest in the company. However, like other meme stocks, sustaining momentum after the initial surge has proven to be difficult.

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