Shares of Trump Media & Technology Group (DJT), the company behind former President Donald Trump’s social media platform Truth Social, have taken a nosedive, erasing a major portion of Trump’s net worth, CNN reports.
Since reaching a peak of $66.22 on March 27, DJT stock has plummeted by 74%, falling to its lowest level since the merger that brought the company public. This selloff has wiped out billions of dollars in value for investors, including Trump himself.
Trump’s dominant stake of 114.75 million shares, once valued at $6.2 billion, has now dropped to roughly $2 billion, causing him to fall off the Bloomberg Billionaires Index of the world’s 500 richest people.
“If this wasn’t Trump, this thing would be trading at $1,” said Matthew Tuttle, CEO of Tuttle Capital Management.
Beyond the company’s weak fundamentals, analysts believe several factors are contributing to the stock’s decline. One such factor is the close race between Trump and Vice President Kamala Harris in some polls.
Trump Media has lost roughly half of its market value since President Joe Biden withdrew from the race and endorsed Harris on July 21.
“This stock is entirely a Trump-gets-elected play,” Tuttle explained. “If Trump wins, this could be a viable company. But if he loses, I don’t know how this is a going concern.”
Adding to the uncertainty is the impending expiration of the lock-up period on September 20, which currently prevents Trump and other insiders from selling shares. This could lead to a wave of selling, further impacting the stock price.
While Trump Media does possess over $300 million in cash reserves, and is developing a streaming service aimed at conservatives, its future remains uncertain.
Analysts advise investors, even Trump supporters, to carefully consider the company’s fundamentals before investing in DJT stock. “I am a huge believer that you must keep politics and profits separate,” Tuttle said. “If you’re holding onto this for dear life because you’re a Trump fan, that’s just stupid. You invest to make money.”