Former President Donald Trump’s media company, Trump Media & Technology Group (TMTG), is facing a significant financial downturn, with shares of the company plummeting to record lows. The sharp decline has wiped out a large portion of Trump’s personal fortune, as the value of his dominant stake in the company has dropped dramatically.
TMTG, the parent company of Truth Social, saw its shares fall to their lowest point since going public earlier this year. While the stock experienced a 7% rebound on Monday, it remains down 72% from its peak price of $66.22 on March 27. This steep selloff has erased billions in wealth for Trump and other investors.
Trump’s 114.75 million shares were valued at $6.2 billion in May but have now dropped to around $2.1 billion. This decline has pushed Trump off the Bloomberg Billionaires Index, which ranks the world’s 500 wealthiest individuals.
The massive losses reinforce concerns voiced by analysts who have long questioned the valuation of Trump Media, citing the company’s financial struggles and minimal revenue. Truth Social, TMTG’s flagship platform, remains a small player in the social media landscape.
“If this wasn’t Trump’s company, it would be trading at $1,” said Matthew Tuttle, CEO of Tuttle Capital Management, in an interview with CNN.
Some high-profile figures have also criticized the stock’s value. In April, billionaire Barry Diller called Trump Media investors “dopes,” and LinkedIn co-founder Reid Hoffman described the company’s valuation as “absurd.”
Beyond the company’s weak fundamentals, analysts suggest that political factors may also be contributing to the stock’s decline. Tuttle pointed out that Trump Media has lost about half its market value since President Joe Biden dropped out of the race and endorsed Vice President Kamala Harris in July. Polls show Harris and Trump in a tight race, which Tuttle believes is a major factor impacting investor confidence.
“This stock is entirely tied to Trump’s chances of getting elected,” Tuttle said. “If Trump wins, this could become a viable company. But if he loses, I’m not sure how it stays afloat.”
Despite the downturn, Trump Media still holds over $300 million in cash and equivalents, which could be used to support its operations or make acquisitions. The company is also expanding its services, having recently launched a conservative-focused streaming platform, Truth+, on iOS, Android, and the web.
Another looming challenge for Trump Media is the expiration of a lock-up period on September 20, which will allow insiders, including Trump, to sell shares. However, experts have warned that selling a significant number of shares could further damage the stock price.
While Trump Media’s fortunes may improve, especially with a high-profile debate between Trump and Harris on the horizon, Tuttle advised investors to proceed with caution, emphasizing the importance of separating political loyalty from financial decisions.
“I believe strongly that politics and profits must remain separate,” Tuttle said. “Holding onto this stock just because you’re a Trump supporter is not a smart move. Investing should be about making money, not political allegiance.”
