Former President Donald Trump's stake in the corporate owner of Truth Social has seen a significant decrease in value, dropping by $900 million since Vice President Kamala Harris entered the race for the White House on July 21. The share price of Trump Media & Technology Group has fallen by approximately 23% since then, with a recent sharp decline amid a broader market selloff.
As of July 19, Trump's dominant stake in the conservative social media company was valued at just over $4 billion. However, it has since plummeted to about $3.1 billion, reflecting the market's response to the changing political landscape.
The fluctuations in Trump Media's share price have been influenced by national and battleground polls indicating a close competition between Trump and Harris. Investors are closely monitoring the stock as a potential indicator of Trump's chances of returning to the White House, with Truth Social possibly serving as a platform for presidential communications if Trump wins.
Despite initial spikes in June following certain events, such as Biden's debate performance and an attempted assassination on Trump, Truth Social has struggled to gain traction in the social media sphere. The platform experienced a 38% year-over-year decline in unique visitors in June, marking a concerning trend of consecutive monthly decreases.
Experts have characterized Trump Media's stock as a meme stock, driven more by hype and momentum than underlying fundamentals. Trump's significant ownership in the company, along with his role as chairman and primary user on Truth Social, has contributed to the stock's volatility.
While Trump's net worth is estimated at $5.9 billion, the recent selloff has reduced Trump Media's value to $5.1 billion. However, concerns have been raised about the company's valuation, given its limited revenue generation and Truth Social's relatively minor presence in the social media landscape.
Despite its current market value exceeding that of established companies like JetBlue, which generated significantly more revenue than Trump Media last year, the company's future prospects remain uncertain amidst ongoing market turbulence.
