Value of shares in Trump’s Truth Social site continues to slump
The value of shares in Donald Trump’s social media company Truth Social has slumped more than 74 per cent since late March, when it was listed on the Nasdaq stock exchange.
Shares in Trump Media & Technology Group, which owns the Truth Social platform, fell more than 6 per cent to below $17 on Wednesday.
After making its Nasdaq trading debut, the shares rose to as high of $66.22 in late March, giving the company a market value of about $11 billion.
The market valuation of the company has since fallen to $3.4 billion, wiping billions of dollars off the value of the former president’s stake in the firm.
Trump launched Truth Social, his own social media app, in 2021, “to stand up to the tyranny of Big Tech” after being banned from Twitter and Facebook over the attack on the US Capitol on January 6.
Trump has since returned to X, as it is now known, after the social media site was bought by Elon Musk, the self-proclaimed “free speech absolutist”.
The latest drop in the shares of Trump Media & Technology Group comes weeks before the end of a lock-up agreement which prevents the former president from selling shares in the company.
The shares surged after a failed assassination attempt on the former president at a campaign rally in western Pennsylvania in July. Days later, Trump was confirmed as the Republican presidential candidate.
However, the shares have since lost momentum. The value of the shares are seen by some investors as a proxy of political support for Trump in the US presidential race.
Last month, the company reported revenues of about $836,000 in the three months to the end of June, down 30 per cent from $1.2 million in the same quarter last year.
Net losses shrank to $16.4 million from $22.8 million.
