The parent company of Donald Trump's alternative social media platform Truth Social has continued plummeting in stock value, with shares taking another 12% hit on Friday, RadarOnline.com has learned.
Since it merged with Truth Social and began trading on the NASDAQ stock exchange under the ticker symbol DJT last week, Trump Media and Technology has tumbled from $79.38 to $40.59, bringing the former president's net worth down by more than $1 billion.
Although the company's market value saw initial gains after it went public, the stock price took a nosedive after financial disclosures revealed major losses in 2023.
Trump Media & Technology lost $58 million and and brought in only $4.1 million in revenue last year, according to a Securities and Exchange Commission (SEC) report.
CNBC contributor Herb Greenberg has predicted that Trump Media stock is "on its way" to go even lower.
"This is the most overhyped meme stock since the meme stock mania," Greenberg said upon the company's NASDAQ debut last week. "In any other universe, in any other world with any other sort of name or person associated with it, this would be a penny stock."
Greenberg reiterated his forecast during an appearance on CNBC's Last Call with host Brian Sullivan on Friday.
"Trump Media – the social media stock – plummeting another 12% today,” Sullivan noted. “Over the last week, it is down more than 34%. Remember, the stock just debuted via [a special purpose acquisition company] merger last Tuesday."
"Don’t you love when we bring you on, Herb, because you were right?" he asked. “If you were wrong and we brought you on, you’d probably be mad, but we just gave you a shoutout.”
“It’s always nice,” Greenberg responded. “Well, it’s not a penny stock yet, but it looks like it’s on its way to go lower. But who knows? Between here and there, it can go much higher.”
“Good point, because we don’t know who’s buying this thing,” Sullivan said. “The former president, very polarizing guy. Some people hate him, some people love him. So, this is kind of a stock that could swing with a lot of different winds I would imagine.”
“It could,” Greenberg replied. “But as everybody has said, from me on to everyone or anybody, based on fundamentals this stock doesn’t deserve to be anything but ultimately the penny stock that many of us think it ultimately will be. Some people say it’s a stock that’s gonna either go to zero or will end up being state TV. Depends on your perspective.”
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Trump’s stake in the company, which was valued at $4.9 billion last week, has already dropped to $4.9 million, prompting mockery and laughter from CNN hosts.
The ex-president, who is currently strapped for cash due to his ongoing legal battles, is prohibited selling his shares for six months.