Former President Donald Trump’s net worth took a hit on Wednesday as shares of his social media company, Trump Media and Technology Group, continued to decline. The company’s market capitalization dropped below $5 billion, down from its peak of twice that valuation just two weeks ago. Trump’s 58% stake in the company, totaling 78.75 million shares, fell in value from $2.95 billion to $2.65 billion as shares declined by over 9% to $33.91.
Trump Media’s share price is now 57% below its peak of $79.38 on its first day of trading under the DJT ticker in a special-purpose acquisition company merger. Trump’s net worth has now dropped from over $7 billion in March to $4.5 billion as of Wednesday, according to Forbes’ estimates. This decline comes as many analysts suggest that Trump Media may be overvalued, given its modest revenue and continued losses. Forbes has estimated the company’s worth to be between $40 million and $90 million based on similar metrics used for evaluating other social media companies.
Trump Media went public last month following a merger with Digital World Acquisition Corp, announced in October 2021, about nine months after Trump left office. The decision to go public through a special-purpose acquisition company allowed the company to avoid some of the regulatory hurdles associated with traditional public offerings. Trump has praised the company on Truth Social, stating that he believes it is “very solid” and “growing fast.” However, analysts point out that Trump Media is the most expensive U.S. stock to short, with investors having to pay about $1 per day to brokers on the other side of the trade.
The decline in Trump’s net worth marks a significant drop in value since Trump Media went public on March 26, with his net worth growing by $4.1 billion at that time. However, with the subsequent decline in the company’s share price, Trump’s net worth has taken a hit. Trump continues to stand by Trump Media, despite the company facing skepticism from analysts and questions about its true value. With shares continuing to decline and the company’s market capitalization falling, it remains to be seen how Trump Media will perform in the long term and how it will impact Trump’s net worth in the future.
As shares of Trump Media and Technology Group continue to decline, Trump’s net worth has seen a significant decrease. The company’s market capitalization is now below $5 billion, less than half of its valuation just two weeks ago. Trump’s stake in the company has also dropped in value, leaving his net worth at $4.5 billion as of Wednesday. Despite this decline, Trump remains optimistic about the company’s future, touting it as “very solid” and “growing fast” on Truth Social. However, analysts have raised concerns about the company’s overvaluation and its modest revenue and continued losses, leading to skepticism about its true worth.
