Donald Trump’s Shares In Truth Social Media Company Fell

Shares of former President Donald Trump’s social media company fell precipitously Monday after the company revealed its latest financial results, predictably well below what a typical multibillion-dollar company would deliver.

 

Trump Media’s stock (ticker $DJT for Trump’s initials) tanked 13% by late morning, trading at about $53 per share, a nearly 35% drop from its $79 peak set last Tuesday on its first day as an independently traded public company.

 

Trump, who owns 78.5 million shares in Trump Media, about 57% of all outstanding shares, accordingly had his stake in the social media venture slide from its peak of $6.25 billion to Monday’s $4.25 billion.

 

Monday’s freefall came after Trump Media unveiled its full-year 2023 results for the first time, revealing full-year revenues of $4.1 million on a net loss of $58.2 million, with fourth-quarter sales of roughly $750,000.

 

The uninspiring results for Trump Media, whose primary offering is the conservative social media platform Truth Social, reveal just how rich the company’s $6 billion market capitalization is compared to other public companies. Trump Media’s 1,470 price-to-sales ratio, which compares a company’s total valuation to its last 12-month sales, is exponentially higher than social media peers Reddit and Snap’s respective 9 and 4 price-to-sales ratios. Though Trump Media is a young company with the theoretical potential to dramatically scale its business, many experts classify it as a meme stock whose rise compares to the 2021 surges from the likes of AMC and GameStop. Trump Media went public last week via a reverse merger with Digital World Acquisition Corp. first announced more than two years ago, and its shares jumped as much as 40% in its debut on the Nasdaq stock exchange.

 

FORBES VALUATION

Trump’s net worth has more than doubled since the completion of his social media company’s merger with Digital World, sitting at $6.1 billion even after sinking more than $600 million Monday.

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