Former President Donald Trump’s social media company, Trump Media & Technology Group (TMTG), has experienced a substantial decrease in its stock price, which fell by 41% over the course of three days, settling at $30.56. This sharp decline has also impacted Trump’s net worth, reducing it by $2.4 billion.
The drop in TMTG’s stock has led to a significant decrease in Trump’s wealth. Over the past five weeks, the stock price had surged due to optimism around Trump’s re-election potential, reaching as high as $51 last Tuesday. However, as forecasts about the election results shifted, the company’s value plummeted, CNN reported.
TMTG’s stock is classified as a “meme stock,” driven more by market sentiment than its actual business value. Many of the company’s investors are linked to Trump’s political prospects, and this recent downturn has dealt a considerable blow to TMTG’s valuation.
Currently, Truth Social, TMTG’s platform, has a relatively small user base, with only around 698,000 active users per month. In contrast, X (formerly Twitter) boasts nearly 70 million users. This significant gap in user numbers highlights TMTG’s weaker position in the market compared to its larger competitors.
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