Trump loses nearly $2 billion as Truth Social parent stock hits new low: reports

The stock value for Donald Trump's media company dropped to its lowest since going public, stripping away nearly $2 billion from the former president's share, according to multiple reports.

Shares for Trump Media were as high as $79.38 on March 26 when trading began, but this Friday shares plunges to $41.90, a drop of around 47 percent.

The drop also took Trump’s personal stake in the company from $4.9 billion to about $3.3 billion,CNN reported.

The fluctuation in share prices is causing analysts to speculate that the company is massively overvalued by Wall Street.

“I mean, it’s ridiculous,” billionaire chairman of Expedia Barry Diller said on CNBC. “The company has no revenue.”

In a statement to CNN, a spokesperson for Trump Media slammed the company's critics.

ALSO READ: 'He’s still really mad': Megyn Kelly says Trump won't return to her show 'anytime soon'

“It is unsurprising to see die-hard Trump haters and leftwing flacks blow a gasket now that Truth Social has become a public company that, still today, refuses to suppress political expression that contradicts the narratives they want to enforce,” spokesperson Shannon Devine said.

According to The New York Times, challenges for the company, which owns Trump's Truth Social platform, started "during the company’s efforts to complete a merger with a special purpose acquisition company, or SPAC, to help take it public. That process involved a Securities and Exchange Commission investigation, an $18 million penalty and a lawsuit involving two early founders of the social media company that made its way to Delaware Chancery Court."

The Times went on to say that Trump Media looks a lot like a "meme stock" -- shares of companies whose investors may be influenced by social media behavior -- which is volatile by nature, according to experts.

"Mr. Trump, however, the presumptive Republican nominee for president, may have larger worries on his mind. He recently had to post bonds in two separate cases, amounting to well over $200 million," The Times' report stated.

Recommended Links: