The decline follows the announcement by Trump Media & Technology Group that it lost around $60 million (£48 million) on revenue of only about $4 million in the previous year. According to Bloomberg, the former president’s net worth decreased by $1 billion as a result of the price decline. With last week’s share increase, the company’s valuation reached an astounding $11 billion. However, analysts had predicted that the price would fall since Truth Social, the company’s flagship product, is losing customers and losing money.
Trump Media’s Shares Increase By 200% This Year
The price surge evoked memories of the “meme stock” frenzy of the epidemic period, when the stock values of firms like GameStop and AMC skyrocketed despite the weakness of their core operations, like as revenue. Trump Media’s shares, which are entirely funded by Truth Social advertisements, have increased by about 200% so far this year.
Small-time investors, at least some of whom seem to be supporting the former president as his legal issues and the accompanying costs mount, have been the driving force behind the spike. With a roughly 60% ownership position in the business, Mr. Trump has the potential to profit billions of dollars when he cashes out his shares. However, he is legally prohibited from doing so for another six months unless the board of the corporation waives this restriction.
