After a hot start on Wall Street, former President Donald Trump’s social media company has lost nearly $4 billion of its value as stock prices continue to fall from their opening highs.
Last week, Trump Media and Technology Group, the parent company of Trump’s social media platform, Truth Social, went public on the stock market. While shares boomed on their first day to a high of $79.38 on March 26, they have since plummeted.
Since then, shares have consistently closed lower than they opened, falling 21%, or $13.20, to $48.66 on Monday. That is below the opening price set last Monday at $49.90 a share. Overall, at Monday’s close, the stock was down 39% from its high last week.
The drop-off comes as Trump’s company’s regulatory filing disclosed mounting losses and had a note from the company’s accountant that said its losses “raise substantial doubt about its ability to continue as a going concern.”
On the bright side, the stock does remain higher than before a deal that took Trump’s media company public, as shares of Trump’s company are still up 178% this year.
When it comes to how the losses have affected Trump’s wealth, as he owns 57% of the company, the former president has lost, on paper, $2.5 billion, as a result of the falling share prices.
At its peak last week, Trump’s stake in the company was worth $6.3 billion but is now at $3.8 billion.
Overall, the company is worth around $6.7 billion, making it worth more than several companies, including Harley-Davidson, Bausch & Lomb, and more.
The only difference is that those companies have annual revenue in the billions, while Trump’s Truth Social only made $4.1 million in revenue last year. The site also has about 5 million members, which isn’t much compared to its competitor X, which boasts more than 500 million monthly users.
Jay Ritter, a professor of finance at the University of Florida and an expert in IPOs, shared with CNN last week that this situation was unusual, noting that this could be another “meme stock” situation.
“This is a supercharged meme stock,” Ritter shared. “Its market price is entirely divorced from fundamentals, but unlike what we saw with meme stocks like GameStop or AMC, the motivations of its investors seem to be different.”