Trump’s Truth Social Share Down

Wall Street saw a big drop in the value of Donald Trump’s social media company Truth Social just a week after it started trading publicly. The company’s shares fell by 20% on Monday.

This sharp decline caused the former US president to lose $1 billion from his net worth. It’s a huge setback for him, especially considering his other financial and legal problems.

Some experts predicted that the stock would fall. Our next report will look into the true value of Trump’s media venture, Truth Social, and why its shares are dropping.

Trump’s Media Mishap: Losing Millions When He Needs It Most

On Monday, things took a nosedive for Donald Trump’s social media venture. The company’s shares plummeted by roughly 20%, barely a week into its public trading debut.

The drop in the company’s value came after the Trump Media and Technology Group revealed a huge loss of nearly $60 million last year. They only made about $4 million in revenue, which is very low compared to their losses.

Since Trump owns 78% of the company, he felt the impact directly. His net worth decreased by around $1 billion, which is a significant hit for him. This situation is especially tough for the former president, given his urgent financial requirements.

Even after Monday’s drop, Trump’s stake in the company  Truth Social is still worth around $3.8 billion, with 8 million shares. Surprisingly, Trump Media’s shares have risen by almost 200% until now.

Trump’s Media Stock Starts Strong, but Experts Say Be Careful

When trading began, Trump’s media company’s Truth Social stock shot up by a huge 56%, reaching $7.8. But by the end of the day, it settled at $57.99, a smaller 16% increase.

On the very first day of trading, Wall Street estimated that Trump’s media company Truth Social was worth a whoppingB However, experts who study these things cautioned that this huge number might not be accurate or realistic.

They compared the sudden increase in value to the excitement that happened during the pandemic when some stocks went up a lot for reasons that didn’t really make sense.

The Rollercoaster Ride of Meme Stocks

Companies like Revenue face challenges, especially when they become meme stocks. Meme stocks are strongly affected by the excitement of many small investors, which makes them really unpredictable.

These stocks can suddenly go up a lot or drop a lot without any notice. Let’s look at this company as an example. When it first started selling shares to the public, its stock price was high, maybe around $70 or $69 per share.

But now, it’s trading at a different price. If we look at it simply, it doesn’t seem to make sense why the price changed so much.

If you’re someone who invests money in stocks, you might feel confused. But if you’re someone who takes risks, like those who work in hedge funds.

you understand that there will be many ups and downs in the stock market. However, if you’re thinking about investing your money for a long time, the situation can seem puzzling or unclear.

The company is earning only $3.4 million, but it’s spending a lot more, $49 million. The price it’s selling for doesn’t seem right. It’s kind of like those meme stocks we heard about, like GME and AMC in 2021. The issue for Trump Media is that its main product, Truth Social, is…

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Conclusion

In the end, Donald Trump’s social media company, Truth Social, has had a rough start. Its stock value dropped a lot in just a week of trading, and the company revealed it lost a lot of money last year.

Even though it started off with a big value on its first day of trading, experts say it might not really be worth that much.

They compare its situation to when some stocks got really popular for no clear reason during the pandemic. Truth Social’s income is much lower than what it spends, which doesn’t seem right.

So, it’s unclear what the future holds for Truth Social, especially since Trump lost a lot of money because of its stock going down.