Donald Trump's net worth rose to almost $7.5 billion last week after his company Trump Media, the owner of his social media network Truth Social, went public. However, a week later, the stock's price dropped because the company publicly revealed its low earnings.
The company's stock price went up to $77.27 on Tuesday but fell to $48.66 by the end of the following Monday, which is a 37% decrease. Trump's shares, of which he owns 58%, dropped from $7.5 billion to $3.84 billion, which is almost a 48% difference.
The stock price fell sharply after Trump Media reported a net loss of $58 million and only $4 million in revenue in 2023 to the Securities Exchange Commission (SEC). This means the company loses much more money than it makes.
In its filing, Trump Media expressed concerns about its ability to meet financial obligations and stay in business at the current rate.
Truth Social intended to be a platform for censored content creators, but it's mostly used by right-wingers who spread misinformation and hate speech, which big-name advertisers avoid.
Truth Social has kept its user numbers private, and Trump's behavior during his 2024 re-election campaign could make the site less attractive to new users.
Although Trump could sell his stock to raise money, it might give the impression that he's trying to profit before the stock value drops, which could lead other stockholders to do the same and harm the business.
Trump is facing $500 million in financial legal penalties for business fraud in New York and a defamation case, and he's seeking to reduce the penalties while appealing the court decisions. Reports suggest that his properties in New York may be repossessed to cover the debts.
