Business

Trump Media (TMTG) Stock Falls Below $20—And Trump’s Net Worth Falls $140 Million

August 29, 2024

Topline

Shares of Trump Media and Technology Group fell below $20 for the first time since the company officially went public through a merger in March, continuing a downward trend for the Truth Social parent company—and while the stock price ended the day at just over $20, Trump’s net worth dropped about $102 million.

Truth Social’s parent company Trump Media could close at its lowest level since it merged with a … [+] blank-check firm to go public.

The Washington Post via Getty Images

Key Facts

At market close Wednesday the company traded at $20.10—a 65.34% drop from when the company debuted on the Nasdaq exchange on March 26 through a special-purpose acquisition company (SPAC) merger.

Trump owns 59% of Trump Media, or about $2.2 billion, according to CNBC, which is more than half of Forbes’ estimate for his net worth.

Trump Media & Technology Group Corp., which has a market cap of $3.94 billion, has seen its stock fall steadily since June, and it took a sharper fall earlier this month after the company released an earnings report with extremely low revenue.

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Key Background

Trump Media—which owns X rival Truth Social and says it plans to move into streaming TV—went public on March 26 after it successfully combined with blank-check firm Digital World Acquisition Corp. The long-delayed merger was first announced in 2021, and shares of Digital World fluctuated amid anticipation about the merger, settling at under $20 a share for much of last year. Since its launch, some have considered Trump Media to be a highly volatile “meme stock” that sees price changes in response to non-earnings developments, including Trump’s odds to win the presidency in November. The company’s latest big drop on Aug. 12 came not only amid the poor earnings report, but also as the former president returned to X, formerly known as Twitter. Trump had taken nearly a three-and-a-half year break—save for one post—from X, which is owned by billionaire Elon Musk and seen as a competitor to Trump’s own Truth Social, which he launched after being removed from Twitter and used as his main social media platform for years.

Surprising Fact

The last time the company’s stock price closed below $20 was on Jan. 12 ($17.32), before Digital World merged with Trump Media.

Forbes Valuation

We estimate Trump to be worth $4.2 billion, as of 4:45 p.m. EDT Wednesday, making him the 807th wealthiest person in the world. His net worth includes his Trump Media shares, as well as real estate and other assets.

What To Watch For

If Trump sells part of his stake in Trump Media. He has not indicated plans to sell, but a six-month ban that is preventing him from selling his shares is set to expire on Sept. 25.