Donald Trump’s Truth Social stock value plummets a week after going public
Donald Trump’s social media platform has plummeted in value after going public. (Getty)
Shares in Donald Trump’s social media company are reported to have fallen drastically, just a week after its stock market debut.
The value plunged after Trump Media & Technology Group, for which the “open, free, and honest” social media platform Truth Social is the flagship, reported a $58 million (£46.1 million) loss in 2023, while only bringing in $4.13 million (approximately £3.2 million) in revenue.
Although shares soared in early trading – rising beyond $79 (more than £62) at one point – they fell to slightly more than $48 (about £39) by the close of business yesterday (1 April), according to AP.
The company’s auditor, Colorado firm BF Borgers, said the company’s losses “raise substantial doubt about its ability to continue as a going concern”.
Trump’s stake in the firm, initially valued at $6 billion (£4.78 billion), plunged by at least $1 billion (£796 million) by the end of the week.
Financial experts compared the initial surge in valuation to the so-called meme stock phenomena in which the value of companies such as video game retailer GameStop or TV channel AMC rose because of internet memes, persuading investors to buy shares.
But this still may not be enough to help the platform survive the teething issues which have been present since its launch in 2022.
Speaking to Sky News, Insider Intelligence analyst Ross Benes claimed that Truth Social was “overvalued” and that reality is “dragging down the stock”.
Its high debut was “unsustainable,” he added.
Shares finished the day at $58 (approximately £46) when it made its New York debut last week but had fallen to closer to $49 (£39) by the close on Monday, Sky reported.
However, Trump’s stake in the company could prove a lifeline for the former president after he was given a 10-day deadline to secure a $175 million (£139 million ) bond as part of a civil fraud case.
According to Bloomberg, Trump Media’s early valuation gave him a net worth $6.5 billion (£5.17 billion), putting him on the list of the 500 richest people in the world.
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