Former President Donald Trump’s media company, Trump Media, faced a significant blow as its stock price experienced a drastic decline in June. On Thursday, the sell-off of Trump Media continued, with shares of Trump Media closing nearly 15% lower in another volatile trading session. The stock price of the conservative social media app Truth Social, under the Nasdaq symbol DJT, ended the trading day at $26.75 per share, marking a more than 40% decrease from the start of the month when the stock cost just over $49 a share. The remarkable decline in Trump Media’s stock price came amidst a period of intense trading activity, with more than 13.2 million shares changing hands on Thursday, a figure that significantly surpasses the company’s average trading volume.
The sell-off has had significant implications for former President Trump. His net worth took a hit of approximately $475 million on Thursday alone, as shares of Trump Media continued to slide, resulting in a decrease of more than $2 billion in the value of his stake in the company during the month of June. Former President Trump’s nearly 65% stake in Trump Media & Technology Group, the parent company of Truth Social, comprising 114.75 million shares, saw its value drop from $3.5 billion to $3.1 billion as shares fell by over 13% to $27.17 on Thursday morning. The rapid decrease in Trump Media’s share price, which has decreased by about 43% since the start of the month, led to the diminishing value of Trump’s $5.6 billion stake in the company by about $2.4 billion.
The decline in the value of Trump’s stake in Trump Media, as well as the significant decrease in the company’s stock price, have raised concerns and captured the attention of market observers. The company’s massive trading activity and the sharp drop in its stock price have brought attention to its financial performance, particularly its revenue generation. The sell-off has also drawn focus to the viability and potential competitiveness of Truth Social in the social media landscape, particularly as it competes with established and emerging platforms. As the stock market continues to respond to the developments surrounding Trump Media, stakeholders will closely monitor the company’s steps and strategic measures in response to the sell-off and its long-term impact on the company’s valuation and market position.
