Business

Trump Media plunges as volatile trading sends social media firm’s market value below $5 billion

Donald Trump

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  • Trump Media shares plunged as much as 10% on Wednesday.

  • The drop sent the company’s market value below $5 billion for the first time since its IPO.

  • Donald Trump was removed from the list of the 500 richest people in the world on Wednesday, with Forbes now placing him at 699th place.

Shares of Donald Trump’s social media company plunged as much as 10% on Wednesday, bringing the company’s stock value below $5 billion for the first time since its IPO.

Shares of Trump Media and Technology Group were trading at $34.30 per share around 3:20 p.m. in New York, down 8.5%.

The stock has plunged more than 40% since the start of the month.

Bloomberg reported a decline in options trading for Truth Social’s parent company, with about 70,500 contracts changing hands on Wednesday, a third of the previous 10-day average.

Following Trump Media’s debut on Nasdaq under the name “DJT” in late March, its shares surged 67%, catapulting Donald Trump’s wealth to nearly $7 billion, with the former president owning 58% of the shares of the company.

However, spasms of stock trading volatility have caused Trump to fall out of the world’s 500 richest people, while his personal stake has fallen below the $5.8 billion mark. Forbes now places Trump 699th in the world, with an estimated total wealth of $4.5 billion.

Investors grew nervous about the company’s future last week, after Trump Media revealed a $58 million net loss for 2023 and just $4 million in revenue.

As the platform works to onboard more users, advertisers and partners, Trump Media said in an SEC filing that it expects continued operating losses and negative cash flow in the short term, as well as a “material weakness” in its financial reporting controls. Media guru Barry Diller called Trump Media a “scam” last week.

Then there’s the fact that Trump could one day decide to sell his vast stake, either after a lock-up period expires or if the board of directors, made up of his family and close associates, tells him grants a waiver. Trump’s sell-off could cause the stock price to fall further.

Read the original article on Business Insider

News Source : finance.yahoo.com
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Sara Adm

Aimant les mots, Sara Smith a commencé à écrire dès son plus jeune âge. En tant qu'éditeur en chef de son journal scolaire, il met en valeur ses compétences en racontant des récits impactants. Smith a ensuite étudié le journalisme à l'université Columbia, où il est diplômé en tête de sa classe.Après avoir étudié au New York Times, Sara décroche un poste de journaliste de nouvelles. Depuis dix ans, il a couvert des événements majeurs tels que les élections présidentielles et les catastrophes naturelles. Il a été acclamé pour sa capacité à créer des récits captivants qui capturent l'expérience humaine.
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