Former President Donald Trump has seen a significant decrease in his net worth, largely attributed to a dramatic drop in the value of his stake in Truth Social, the conservative social media platform he owns. Since Vice President Kamala Harris officially entered the 2024 presidential race, Trump’s financial position has deteriorated, with his investment in Trump Media & Technology Group losing approximately $900 million.
As of July 19, just before President Joe Biden exited the race and endorsed Harris, Trump’s stake in Truth Social was valued at over $4 billion. However, the share price of Trump Media & Technology Group has since plummeted by about 23%, reducing the value of Trump’s investment to around $3.1 billion. The drop was further exacerbated by a broader market selloff on August 1.
The decline in Trump Media’s share price reflects ongoing struggles for Truth Social, which has failed to gain significant traction in the social media landscape. According to data analyzed by TheRighting, Truth Social’s unique visitor count fell by 38% year-over-year in June, marking the third consecutive month of declining user engagement.
This financial turbulence comes as national polls indicate a tight race between Trump and Harris, adding to the uncertainty surrounding Trump Media’s future. Despite a brief spike in stock price following Biden’s poor debate performance and a high-profile assassination attempt on Trump, the overall trend has been negative.
Experts have labeled Trump Media as a “meme stock,” driven more by hype and momentum than by solid financial fundamentals. Despite this, Trump Media remains valued at $5.1 billion, more than twice the value of JetBlue, which had a market capitalization of $2.2 billion despite generating significantly higher revenue last year.
Trump, who owns 114.75 million shares of Trump Media and serves as its chairman, faces mounting challenges. His net worth, estimated at $5.9 billion by Bloomberg, has been impacted by the recent selloff. Analysts have warned that Trump Media’s valuation might be significantly overstated, given its modest revenue and the struggles of Truth Social.
As the 2024 presidential race heats up, the financial difficulties faced by Trump Media and the falling value of Trump’s investments could have broader implications for his political and financial future.
