In a shocking turn of events, former President Donald Trump was found guilty on 34 felony counts for falsifying records, leading to a significant decrease in his net worth. Shares of Trump Media, the parent company of the Truth Social social media platform, fell by 5% on Friday, causing a $316 million decline in the value of Trump’s shares. Trump, who owns 65% of the company, saw the downward swing in shares after becoming a convicted felon, with shares falling about 9% in the first hour of after-hours trading following the Thursday verdict.
Despite the initial drop in share price, there was a brief uptick of over 5% in pre-market trading on Friday, which was attributed to social media momentum among Trump’s supporters to show their financial support for him. This volatility in the stock market reflects the ongoing uncertainty surrounding Trump Media and its future trajectory. As a result of these fluctuations, Forbes reported that Trump’s net worth decreased from $7.8 billion to $7.5 billion as of Friday morning, making him the 357th-richest person in the world.
The trading activity surrounding Trump Media shares has been described as chaotic, with retail investors trying to understand the implications of the verdict on the stock. According to Yale School of Management professor Raphael Duguay, investors are reacting to the news without the foresight and strategic planning that a hedge fund would typically employ in such situations. Trump Media went public in March through a reverse merger with a blank-check company, facing regulatory and legal challenges along the way. Despite low revenue numbers, the company’s market capitalization remains high, indicating a disconnect between its financial performance and stock value.
In a rare move, Trump Media disclosed the risk of a “materially disruptive” event for potential shareholders in the case of Trump’s conviction. Even though Trump is not a member of the board of directors, his ownership stake in the company raises concerns about the impact of his legal troubles on the company’s future. Trump’s son, Donald Trump Jr., and other allies are involved in the company’s leadership, adding another layer of complexity to the situation. The ongoing implications of Trump’s conviction on his business empire and the broader financial markets are still uncertain, but the recent stock price fluctuations highlight the challenges ahead for Trump Media and its investors.
Forbes has been closely following the developments surrounding Trump Media and its impact on Trump’s financial standing. With ongoing coverage of the verdict and its implications, readers can stay informed about the latest updates and analysis. As the situation continues to unfold, experts and investors alike will be closely monitoring Trump Media’s stock performance and its connection to Trump’s legal troubles. The future of Trump’s business ventures and his overall net worth remain uncertain, making it a critical story to watch in the coming days.
