Trump loses more than $1 billion in net worth in two-day Truth Social parent company stock tumble

The Trump Media share price crash plunged its majority owner's net worth down a billion dollars this week

Published October 31, 2024 5:22PM (EDT)

This illustration photo shows a person checking the app store on a smartphone for "Truth Social", with a photo of former US president Donald Trump on a computer screen in the background, in Los Angeles, October 20, 2021. (CHRIS DELMAS/AFP via Getty Images)
This illustration photo shows a person checking the app store on a smartphone for "Truth Social", with a photo of former US president Donald Trump on a computer screen in the background, in Los Angeles, October 20, 2021. (CHRIS DELMAS/AFP via Getty Images)

Former President Donald Trump's net worth has plunged by more than $1 billion this week, triggered by a stock crash at Truth Social parent company Trump Media & Technology Group.

Shares plunged by 22% on Wednesday and another 14% on Thursday, with trading being halted multiple times due to volatility in the stock.

The shares, representing a company that boasted an annual revenue of just $4.1 million last year, have acted as a speculative vehicle for Trump's prospects, with the presidential nominee holding a majority stake. The company's market cap plummeted this September, bottoming out at around $12 a share before rising to $51 a share earlier this month. The drop to around $35 a share on Wednesday took nearly $3 billion off the overall value of the company so far this week.

Share prices had surged by nearly 50% in the week leading up to Tuesday ahead of the crash, fueled in part by a string of polls showing Trump closer to Harris than previous forecasts in battleground states. On Tuesday, the company hit a peak valuation of roughly $10.3 billion, making it momentarily more valuable than Elon Musk's X, The Guardian reported.

Neither the surges nor the crashes appear tied to any actions taken by the business, financial filings or optimism in Truth Social's future profitability. The platform has less than 1 million monthly active users and reports sluggish growth.

Trading of the wildly volatile shares was halted at least three times this week, including a suspension on Tuesday during a massive surge and two on Thursday during drastic selloffs.

The shares aren't the only way Wall Street is gambling on a potential second Trump win. Betting markets like Polymarket favor Trump at rates far beyond election models, though his prospects on that site have seen a seven-point tumble since midday Wednesday.


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