DJT’s Decline: The $4 Billion Wipeout of Trump Media

DJT's Downfall: Financial Turmoil for Trump Media

Former President Donald Trump’s social media company, DJT, is firmly entrenched in a financial quagmire that shows no signs of abating. Last week, shares of Trump Media & Technology Group fell to their lowest point after its public debut, resulting in a precipitous decline of nearly three-quarters (72%) of its value compared to its peak of $66.22 on March 27.

Impact on Trump's Wealth

With the stock plummeting, Trump's prominent stake of 114.75 million shares has dwindled from $6.2 billion in value to a current worth of approximately $2.1 billion. This striking decline has led to Trump's removal from the Bloomberg Billionaires Index.

Concerns Over Viability

Market analysts express concern that the billion-dollar valuation of Trump Media is fundamentally flawed, especially considering the company’s limited revenue stream and the relatively minor presence of Truth Social in the social media landscape. As highlighted by Matthew Tuttle, CEO of Tuttle Capital Management, “If this wasn’t Trump, this would be trading at $1.”

Future Outlook

Despite the challenging circumstances, Trump Media has over $300 million in cash and equivalents, potentially enabling it to pursue acquisitions and further its operations. However, as the lock-up period expiring on September 20 permits insiders to sell shares, analysts caution Trump and his supporters to approach this volatile investment carefully.