NEW DELHI: Trump Media, the parent company behind former President Donald Trump‘s social media platform Truth Social, has experienced a significant decline in stock prices, consequently impacting Trump’s ranking on the Bloomberg Billionaires Index. The index, which daily ranks the world’s 500 richest people, no longer lists Trump following a notable nosedive in Trump Media‘s stock price.
The company’s shares fell 12% on Friday and an additional 8% on Monday, with a further decline of 4.8% on Tuesday before making a slight recovery to close at $37.47, marking an 0.8% increase for the day. However, this was still a more than 50% decrease from its peak in late March. This drastic drop in value occurred after Trump Media merged with Digital World Acquisition Corp, initiating trading under the ticker DJT on March 26, a USA Today report said.
This downturn has erased billions from the company’s market valuation, which stood at nearly $8 billion following its market debut. Trump, who owns approximately 60% of Trump Media, equating to 78.75 million shares, saw his stake’s value soar to as much as $6 billion post-IPO, briefly earning him a spot on the Bloomberg Billionaires Index.
As of the latest evaluations, Trump’s stake is estimated at closer to $3 billion, significantly affecting his net worth which Forbes pegged at $4.8 billion on Tuesday afternoon, ranking him as the 653rd richest person globally. This estimation falls below the Bloomberg Index’s minimum net worth requirement for listing, which was $5.81 billion as of Tuesday.
Trump Media’s stock has been marked by volatility since its inception, reflecting major fluctuations in Trump’s net worth. Despite the company’s valuation standing at $5 billion recently, it contrasts starkly with its financial performance in 2023, reporting a loss of over $58 million against a revenue of $4 million.
Critics argue that the company is overvalued compared to other social media entities, attributing its inflated value to investments by Trump supporters. An audit firm previously cautioned that Trump Media’s significant operating losses cast doubt on its sustainability. Nevertheless, Trump has vocally defended the company on Truth Social, asserting its solidity and rapid growth, and expressing his confidence in its effectiveness and promising future.
(With inputs from agencies)
The company’s shares fell 12% on Friday and an additional 8% on Monday, with a further decline of 4.8% on Tuesday before making a slight recovery to close at $37.47, marking an 0.8% increase for the day. However, this was still a more than 50% decrease from its peak in late March. This drastic drop in value occurred after Trump Media merged with Digital World Acquisition Corp, initiating trading under the ticker DJT on March 26, a USA Today report said.
This downturn has erased billions from the company’s market valuation, which stood at nearly $8 billion following its market debut. Trump, who owns approximately 60% of Trump Media, equating to 78.75 million shares, saw his stake’s value soar to as much as $6 billion post-IPO, briefly earning him a spot on the Bloomberg Billionaires Index.
As of the latest evaluations, Trump’s stake is estimated at closer to $3 billion, significantly affecting his net worth which Forbes pegged at $4.8 billion on Tuesday afternoon, ranking him as the 653rd richest person globally. This estimation falls below the Bloomberg Index’s minimum net worth requirement for listing, which was $5.81 billion as of Tuesday.
Trump Media’s stock has been marked by volatility since its inception, reflecting major fluctuations in Trump’s net worth. Despite the company’s valuation standing at $5 billion recently, it contrasts starkly with its financial performance in 2023, reporting a loss of over $58 million against a revenue of $4 million.
Critics argue that the company is overvalued compared to other social media entities, attributing its inflated value to investments by Trump supporters. An audit firm previously cautioned that Trump Media’s significant operating losses cast doubt on its sustainability. Nevertheless, Trump has vocally defended the company on Truth Social, asserting its solidity and rapid growth, and expressing his confidence in its effectiveness and promising future.
(With inputs from agencies)
