The price of shares in Truth Social, Donald Trump‘s social media platform, have plunged, almost to the lowest price they have ever been since going public.
Truth Social launched in February 2022, about a year after the former president was banned from X (formerly Twitter) and Facebook for posts about the January 6 riots at the U.S. Capitol. While he has since been reinstated to the platforms, he opts to use Truth Social.
Since shareholders of Digital World Acquisition Corp., an existing shell company, agreed to merge with Truth Social’s parent company Trump Media & Technology Group (TMTG) earlier this year—clearing the way for the former president’s company to go public—its stock value has fluctuated. But it has steadily declined in the last few weeks.
According to Google Finance data, as of June 21, the price of a share, traded under the ticket “DJT,” has plummeted to $26.75, down 14.56 percent on the price it was valued at on Thursday.
This price is close to the level the stock was valued at on April 16 when it dipped to $22.84, which in turn was the lowest the share price had been since January 16, when it was at $22.35. The stock has also consistently dipped in value every day since June 12.
Newsweek contacted TMTG by email outside of normal business hours to comment on this story.
The former president has a close to 65 percent stake in TMTG. The company offered him 36 million additional shares earlier this month which brought his total stock in the company to 114.75 million shares, according to filings from the firm to the Securities and Exchange Commission.
Meanwhile, TMTG has had wider financial problems. It reported a net loss of $327.6 million for the first quarter of 2024. This loss was primarily attributed to noncash expenses related to the company’s merger with Digital World Acquisition Corp. TMTG posted a net loss of $210,300 the year before.
After Trump was found guilty of falsifying business records in his hush-money trial last month, Truth Social stock plunged and experts told Newsweek the former president’s conviction may have impacted the stock’s performance.
Trump also lost an estimated $267,367,500 this past weekend as a result of the declining share price in TMTG.
Speaking to Newsweek, Todd Landman, a professor of political science at the University of Nottingham in the U.K., said there would be “continued volatility” in the stock value over the coming weeks.
“The stock value continues to perform badly and is nearing its 52-week low,” he said. “This low performance is owing in part to the legal developments in Manhattan and the rejection of a motion to remove the gag order, which means that content that normally would attract users is not being posted.
“I am surprised that the platform is not posting more forward-looking content, which could attract users back. I think we can expect continued volatility with the Presidential debate next week, followed by the Manhattan sentencing, and the RNC convention.”
Trump still denies wrongdoing in the falsifying business records case and is considering an appeal.
Uncommon Knowledge
Newsweek is committed to challenging conventional wisdom and finding connections in the search for common ground.
Newsweek is committed to challenging conventional wisdom and finding connections in the search for common ground.
The post Donald Trump’s Stock is Approaching Rock Bottom appeared first on Newsweek.
