Topline
Former President Donald Trump’s net worth fell more than $160 million on Tuesday as shares of Trump Media and Technology Group Corp. dropped to their lowest closing price since going public in March—continuing a downward trend for the company that owns Truth Social and plans to expand into streaming TV.
Donald Trump’s net worth fell to $3.9 billion on Tuesday as his social media parent company’s stock … [+] hit a new record low.
Key Facts
Trump, the majority shareholder of the company, saw his net worth fall nearly 4%—or $163 million—to $3.9 billion on Tuesday, making him the 851st wealthiest person as of 4:30 p.m. EDT.
Trump Media and Technology Group, which uses the ticker DJT, closed at $18.08 on Tuesday, marking a 68.82% fall from when the company debuted on the Nasdaq exchange in late March after merging with a special-purpose acquisition company.
Tuesday’s price surpassed Friday’s previous record low ($19.50) since DJT began trading as its own entity.
Trump Media wasn’t alone in struggling Tuesday: All three U.S. stock indexes saw their worst day since Aug. 5 and other social media companies suffered, too, with Reddit falling 4% and Snap falling 5%.
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Key Background
Trump Media went public on March 26 after it combined with blank-check firm Digital World Acquisition Corp. Between when the merger was announced in 2021 and when it happened, shares often settled below $20, but following the merger Trump Media hadn’t closed below that threshold until last Thursday. Trump Media is often considered a highly volatile “meme stock,” which are stocks that often become popular through social media and see price changes in response to non-earnings developments, like how Trump does on the campaign trail. The company saw another major drop on Aug. 12 that was likely tied to two things: It released an earnings report with low revenue and Trump returned to Truth Social rival platform X, formerly known as Twitter, after a nearly three-year absence. Trump was banned from X in 2021 following the Jan. 6 riot, but his account was reinstated after billionaire Elon Musk bought the platform in 2022. Despite being allowed back on X, Trump had only posted once after his reinstatement and primarily posted on Truth Social.
What We Don’t Know
Whether Trump will sell his stake in the company when he’s allowed to later this month. The former president has not indicated he will sell, but the lock-up restrictions that have prevented Trump from doing so during the first six months are set to expire on Sept. 25. Lock-up restrictions are common for company executives and insiders after an IPO.
Big Number
$3.57 billion. That’s the market cap of Trump Media & Technology Group.
Further Reading
ForbesTrump Media Stock Closes Just Above $20—Lowest Price Since Going PublicBy Molly BohannonForbesNvidia Stock Plunges 10% Amid Broader Stock Losses As Rocky September Kicks OffBy Derek Saul