Staff Reports
Trump’s Media empire experienced a major hit with its stock prices plummeting by a whopping 20%. The New York Times reported on this colossal flop, revealing that the company has suffered a staggering $2 billion loss in total value, leaving it at a measly $6.5 billion. Making matters worse, former President Donald Trump’s stock value nosedived from over $6 billion to a paltry $3.7 billion in just a week. This free fall has resulted in Trump Media now being worth a mere fraction of its earlier peak valuation of $10 billion.
Trump Media stock slumps after skyrocketing first-day rise https://t.co/XwhlLDF9pC https://t.co/XwhlLDF9pC
— Washington Examiner (@dcexaminer) April 2, 2024
The parent company of Truth Social, Trump Media, has emerged as the prime target for investors looking to bet on its failure, according to the New York Times. To add insult to injury, Trump himself is currently holding 60% of the beleaguered stock, which he must retain for six long months under the watchful eye of Trump Media’s board. It’s worth noting that despite his massive stake in the company, Trump has no seat on the seven-member board.
To put this debacle into context, Trump Media’s valuation on its opening day had soared to a hefty $8 billion, eclipsing the esteemed companies like Mattel and Western Union. However, this initial frenzy quickly dissipated, culminating in a lackluster closing at $57.99, marking a mere 16% gain after wild fluctuations on the first day of trading.
The genesis of Truth Social came about as a result of Trump’s ousting from Twitter following the Capitol riot on Jan. 6. The shocking turn of events forced him to abandon his cherished platform after a decade-long love affair. Despite Twitter reversing his ban post its acquisition by Tesla CEO Elon Musk, Trump opted to stick with Truth Social.
The once-vaunted Trump Media has taken a catastrophic hit, leaving its stakeholders and the former president reeling from the devastating fallout. With its stock prices in free fall and investor confidence at an all-time low, the road to redemption for Trump Media seems fraught with uncertainty and despair.
