Donald Trump saw his net worth skyrocket when Trump Media & Technology Group went public, but those gains are long gone now that the stock market has cooled. Nonetheless, the former President continues to hype up the company’s primary asset – Truth Social – and will continue to use it as his primary source of communication.
TMTG Debuts On Stock Market As DJT
On March 22, Digital World Acquisition announced a merger with TMTG, which was finalized three days later. They then combined company trades under the symbol DJT and went public – marking TMTG’s official debut on Nasdaq.
“We believe that the commencement of trading of DJT on the public markets testifies to Americans’ demands for free-speech platforms that reject the stifling censorship imposed by Big Tech,” TMTG wrote in a statement on the day of its debut.
Surges As High As $79 During First Day
Trump Media started March 26 at around $50 per share, but it didn’t take long for its stock to skyrocket – surging as high as $79 (an increase of 56%) in the hours after it debuted. In fact, it briefly halted for volatility before going active again.
The stock settled at around $70 per share after its initial surge, but it dropped to a modest $57.99 by the closing bell on March 26 – marking an increase of 16%. It marked a crazy first day of trading, but Trump was happy with the progress.
Has Been Plummeting Ever Since
DJT saw more gains on March 27 and closed the day at $66.22, but it hasn’t surpassed that mark since. In fact, it has continued to drop at an alarming rate over the past week – dropping to $61.96 on March 28 and $48.66 on April 1.
It surpassed the $51 mark on April 2, but has been on a downward trajectory the past few days – currently sitting at $40.59 as it enters its third week on Nasdaq. The last time it was this low was when the merger was announced on March 22.
How Has This Affected Donald Trump’s Net Worth?
As of now, Donald Trump owns 78.5 million shares of Trump Media, which equates to roughly 57% of the company. During its initial surge on March 26, Trump’s stake was worth as much as $6.25 billion – making him one of the 500 richest people in the world.
His net worth has taken a major hit since as the company’s stock continues to plummet. His stake is currently valued at about half of its peak – around $3.3 billion. It’s still a significant amount, but he doesn’t seem to be too happy about the dip.
Trump Takes Aim At The Radical Left Democrats Party
On April 4, Donald Trump took to his Truth Social platform – as he usually does – to defend the company amid a flurry of concerns. He took aim at his competitors, ‘especially those in the Radical Left Democrats Party,’ for their continued attacks against his platform.
He accused his competitors of using their ‘vaunted disinformation machine to try and convince people, and it is not easy to do, that TRUTH is not such a big deal and doesn’t get the word out as well as various others, which they know to be false.’
Accused Of Running Campaign Finance Scam
On April 1, Mary Trump—the former President’s niece and one of his harshest critics—took to her X account and discussed how the plummeting stock prices are only scratching the surface of what she believes is going on behind closed doors.
“The real story, the one that’s buried beneath the sensational headlines, is far more intriguing: Truth Social could be a front for a campaign finance scam,” she wrote – arguing that supporters ‘have a new, surreptitious way to back Donald financially without having to make a direct political donation.’
TMTG’s Low Revenue, High Costs Are Concerning
On Monday (April 1), a new regulatory filing to the Securities and Exchange Commission (SEC) revealed a harsh reality about Trump Media & Technology Group. As much as Donald Trump talks his company up, it’s not making any money – and is, in fact, losing money.
The filing shows just over $4.1 million in revenue during the previous operating year, despite racking up more than $58.2 million in expenses. All in all, the company reported an operating loss of $15.96 million in 2023 – which has many experts concerned about its future.
Trump Says Cash Is The Least Of TMTG’s Problems
In his Truth Social post on April 4, Trump attempted to ease that concern by claiming his company ‘is very solid, having over $200,000,000 in CASH and ZERO DEBT.’ Even if that were true, that cash might be gone fast if the company keeps losing money.
And things might get much worse if the DJT stock continues to plummet – not only affecting the company, but affecting Trump’s net worth at a time when he owes hundreds of millions of dollars in civil cases, lawsuits, and other mounting debts.
Todd Landman Says Truth Social Needs More Users
In a recent interview with Newsweek, Todd Landman – professor of political science in the School of Politics and International Relations at the U.K.’s University of Nottingham – forecasted what would have to happen for TMTG to be successful.
“The potential success of Truth Social (and the DJT stock) thus rests on attracting a much larger volume of users and providing an attractive blend of content, functionality, and services,” he said – implying that an increase in users would bode well for the platform.
Comparing Truth Social To Other Industry Leaders
Landman went on to compare Truth Social to other industry leaders, such as Amazon and Facebook. He first noted how Amazon was founded in 1994, but didn’t show a profit until 2001 – and has been on a steady incline ever since.
“Facebook was founded in 2004 (as TheFacebook) and did not make a profit until it substantially expanded its user base and diversified its business model, particularly opening up its Market Place and ad space,” Landman continued.
Trump Defends His Constant Use Of Truth Social
While everyone is busy trashing Truth Social, Trump is going out of his way to defend just how effective it is at spreading the word. In his post on April 4, he touted the platform as the ‘primary way’ he gets the word out.
“Look, I had hundreds of millions of followers on various platforms, and could have them back again, but was cancelled for largely political reasons. Those platforms all want me back…They need me back! On Truth I have 7,000,000 followers,” the former President wrote.
TMTG CEO Devin Nunes Echoes Trump’s Claims
Trump Media CEO and former U.S. Rep. Devin Nunes also chimed in on the plummeting stock prices – echoing Trump’s claims and offering a heaping of praise for Truth Social.
“Closing out the 2023 financials related to the merger, Truth Social today has no debt and over $200 million in the bank, opening numerous possibilities for expanding and enhancing our platform,” he said – adding that they ‘intend to take full advantage of these opportunities to make Truth Social the quintessential free-speech platform for the American people.’
