Truth Social Roller Coaster Sees Another Stock Plunge

Company's shares are at lowest since trading debut, though the volatility is hard to read
By Jenn Gidman,  Newser Staff
Posted Apr 9, 2024 6:57 AM CDT
Trump's Truth Social Shares Continue Their 'Turbulent' Ride
The download screen for the Truth Social app is seen on a laptop on March 20 in New York.   (AP Photo/John Minchillo)

Last month, Donald Trump's net worth got a brief boost, thanks to the merger of Truth Social parent company Trump Media and Technology Group with Digital World Acquisition Corp. This month, it's a different story, with NPR reporting that Truth Social shares are "slumping." Most recently, they saw a 12% loss on Friday, followed by an 8% loss on Monday, with the company now trading at its lowest level since its erratic trading pattern ensued at the end of March. The stock was priced at about $36 on Monday—down from a high of $66 on March 27, per NBC News. More coverage:

  • In the money: Even though Truth Social hemorrhaged $58 million last year and brought in just $4 million in revenue, its leaders have been doing pretty well financially. The Washington Post details who's been making money despite the company's losses.

  • Trump: The former president's own stake in the company was valued at about $2.9 billion as of Monday; it had risen as high as $6 billion shortly after its trading debut. Business Insider notes this latest plunge has booted Trump off the Bloomberg Billionaires Index (the 500 richest in the world), as it brought him below the $5.8 billion threshold needed to stay on the list. As of Tuesday, Trump claimed a net worth of $4.8 billion, making him the 659th richest in the world, per Forbes.
  • Volatility: CNN details the "stomach-churning ride" that traders have gone on since Truth Social went public on March 26, with "gravity-defying spikes in the share price ... followed by earth-shattering crashes." The outlet adds, "Trump Media is so turbulent that it makes bitcoin's volatility look tame."
  • Caveat: Experts tell NBC it's hard to figure out what's going on with the latest Trump Media stock dip, as there appears to be some short selling going on. The outlet notes that "while some traders are looking to make even more gains from continued price declines, others may be looking to 'squeeze' the short positions by betting that something will cause the share price to rise." One data and analytics expert notes, "This seems more like the gunfight at the OK Corral, with both sides waiting for the other to act first."
(More Truth Social stories.)

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