Stock in the parent company of former president Donald Trump's social media platform fell sharply on Monday, erasing last week's market gains and shaving more than a billion dollars off the value of Trump's stake.
The drop came after a regulatory filing, in which the company — ticker symbol DJT — reported losing $58 million last year, on revenues of just over $4 million.
The platform, Truth Social, which Trump started after being kicked off Twitter (now known as X), has far fewer users than other social media outlets. And its heavy dependence on Trump's own posts make it vulnerable.
"The value of [Trump Media and Technology Group's] brand may diminish if the popularity of President Trump were to suffer," the company said in its filing. "To the extent users prefer a platform that is not associated with President Trump, TMTG's ability to attract users may decrease."
Despite Truth Social's financial losses, Trump loyalists eagerly snapped up shares in the parent company when trading began last week. The stock jumped more than 30% in its first two days on the market, making Trump's shares worth more than $5.2 billion.
That early enthusiasm didn't last. The stock fell more than 6% last Thursday and another 21% on Monday, reducing the value of the former president's stake to $3.8 billion.
That reduced sum could still come in handy for Trump, as he battles legal challenges and must post a bond of $175 million this week while appealing a civil fraud judgment in New York.
Trump can't sell his stock any time soon, though. Monday's filing confirmed that he and other insiders are barred from selling their shares for six months.
