Donald Trump's much-hyped social media platform, Truth Social, has suffered a dramatic financial blow, with its parent company's stock plunging by nearly half in recent weeks. The staggering decline has erased roughly $4bn (£3.2bn) from the value of Trump Media & Technology Group (TMTG), leaving investors reeling.
From Boom to Bust
Just weeks after its high-profile merger with Digital World Acquisition Corp (DWAC), TMTG's shares have nosedived from a peak of $79 to around $40. The rapid devaluation has sparked concerns about the long-term viability of Trump's media empire, which was touted as a conservative alternative to mainstream platforms.
What's Behind the Crash?
Analysts point to several factors behind the collapse:
- Mounting losses: Truth Social reported a $58m loss in 2023, raising doubts about its profitability
- User growth concerns: The platform's active user numbers remain far below competitors like Twitter/X
- Legal troubles: Trump's ongoing court cases continue to create uncertainty for investors
A Personal Blow for Trump
The stock plunge represents a significant financial setback for the former president, whose personal stake in TMTG was valued at over $5bn at its peak. With shares now halved in value, Trump's paper wealth has taken a substantial hit - though he remains barred from selling his stock immediately due to lock-up provisions.
Market experts warn the volatility may continue as Truth Social faces an uphill battle to establish itself in the crowded social media landscape. "This was always a high-risk investment," noted one Wall Street analyst. "The fundamentals simply don't support the earlier valuation."
