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Trump Media stock fell as much as 10% on Wednesday.
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The plunge brought the company’s market capitalization below $5 billion for the first time since going public.
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Donald Trump was removed from the list of the world’s 500 richest people on Wednesday, with Forbes magazine currently ranking him at number 699.
Shares in Donald Trump’s social media company plunged as much as 10% on Wednesday, pushing the company’s market capitalization below $5 billion for the first time since it went public.
Trump Media and Technology Group’s stock was trading at $34.30 per share at around 3:20 p.m. in New York, down 8.5%.
The stock has fallen more than 40% since the beginning of the month.
Bloomberg reported that options trading at Truth Social’s parent company declined, with about 70,500 contracts bought and sold on Wednesday, a third of the average over the previous 10 days.
Following Trump Media’s listing on the Nasdaq as “DJT” in late March, the company’s stock price soared 67%, and the former president owns 58% of the company’s stock, making Donald Trump ‘s assets have soared to nearly $7 billion.
However, Mr. Trump’s personal stock holdings fell below $5.8 billion, and he was removed from the list of the world’s 500 richest people due to wild trading in the stock market. Forbes magazine currently ranks President Trump 699th in the world with an estimated wealth of $4.5 billion.
Investors grew anxious about the company’s future last week after Trump Media disclosed a net loss of $58 million in 2023 on revenue of just $4 million.
The platform aims to bring in more users, advertisers and partners, but Trump Media cited “material weaknesses” in its financial reporting controls in an SEC filing, as well as “material weaknesses” in its financial reporting controls, as well as a short-term plan for operations. The company indicated that it expects losses to continue and cash flow to become negative. Media guru Barry Diller last week slammed Trump Media as a “fraud.”
There’s also the fact that President Trump could someday decide to sell his vast stake if the lockup expires or if he is granted a waiver by his board of directors, which is made up of family members and aides. Trump’s selling could push his stock price further down.
Read the original article on Business Insider
