Since its public debut on March 22nd, Donald Trump’s media and technology venture, DJT, has experienced a significant drop in value, losing approximately 36% of its worth, resulting in the former president’s stake decreasing to around $2.8 billion.
Initially priced at $66 per share on March 27th, DJT stock has since declined to roughly $36. Market analysts caution against drawing definitive conclusions from this depreciation due to the stock’s status as one of Nasdaq’s most heavily shorted entities, indicating widespread bets on its decline.
The value of Trump’s social media endeavor now mirrors its pre-merger evaluation when Trump Media combined with shell company DWAC under a special-purpose acquisition company (Spac) arrangement in March. While DWAC, now renamed DJT, experienced a surge in value following its public listing, momentarily elevating Trump’s theoretical wealth to over $6 billion, the company’s revenue remains meager, with no profit reported despite generating $4.1 million in revenue last year.
Trump (Credits: CNN)
Some investors initially supported DJT as a means of backing Trump’s bid for a second presidential term in November despite his numerous legal entanglements, including over 80 pending criminal charges related to election subversion, mishandling classified materials, hush-money payments, and fraudulent business practices. However, many are now divesting their DJT shares.
Trump, subject to a lockup agreement, cannot sell his shares until September despite the ongoing decline in value. Legal challenges surround the company, including an investigation by the US Securities and Exchange Commission into DWAC prior to its merger with Trump Media, as well as insider trading charges against a DWAC executive.
Notably, former contestants of Trump’s reality TV show, The Apprentice, have sued, alleging that Trump plans to diminish their stakes in the company, prompting a counter-suit from Trump disputing their entitlement. Trump remains optimistic about DJT’s Truth Social platform, which is aimed at combating perceived censorship in mainstream media.
Trump and Truth Social’s CEO, Devin Nunes, a former US congressman, assert confidence in the venture’s future, emphasizing its lack of debt and substantial financial resources for expansion. They envision Truth Social as a premier platform championing free speech for Americans.
