Donald Trump's Wealth Shrinks by $2B as Truth Social Stock Plummets

Expedia's Diller questions Truth Social's financial viability publicly.

by Nouman Rasool
SHARE
Donald Trump's Wealth Shrinks by $2B as Truth Social Stock Plummets
© Scott Olson/Getty Images

In a significant financial downturn for the former President Donald Trump, the market valuation of his media enterprise, Trump Media, plummeted to an unprecedented low, erasing almost $2 billion from his investment portfolio.

This nosedive in stock value has caught the attention of industry watchers and financial analysts, stirring speculation about the company's actual worth in the high-stakes realm of Wall Street. The tumult began when shares of Trump Media, initially soaring to an impressive $79.38 on March 26, drastically fell to $41.90 by the close of trading this Friday, marking a precipitous drop of nearly 47 percent.

This sharp decline has significantly reduced Trump's personal stake in the company from an estimated $4.9 billion to roughly $3.3 billion, as reported by CNN. Such dramatic fluctuations have led to widespread conjecture among financial experts, suggesting that Trump Media might be grossly overvalued by market participants.

Diller Critiques Trump Media

Barry Diller, the billionaire chairman of Expedia, voiced his skepticism on CNBC, highlighting the company's apparent lack of revenue generation. "I mean, it’s ridiculous,” Diller remarked, pointing to the valuation's seeming incongruity with the company's financial performance.

In defense, Trump Media, through spokesperson Shannon Devine, issued a statement to CNN critiquing its detractors. "It is unsurprising to see die-hard Trump haters and leftwing flacks blow a gasket," Devine stated, defending Truth Social's commitment to unfiltered political expression amidst accusations of enforced narratives.

Further complicating matters for Trump Media, The New York Times reports, are the hurdles encountered during its attempts to merge with a special purpose acquisition company (SPAC) to go public. These challenges include a Securities and Exchange Commission investigation, an $18 million penalty, and a lawsuit involving early founders of the social media platform that reached Delaware Chancery Court.

Experts likened Trump Media to a "meme stock," prone to volatility due to social media-influenced trading behaviors. Amidst this financial turmoil, Trump faces additional legal challenges, having recently posted bonds exceeding $200 million in two separate cases, as noted by The Times.

This financial upheaval and legal entanglement suggest a tumultuous period for Trump, underscoring the volatile nature of both his business ventures and political ambitions.

Donald Trump
SHARE