Truth Social owner Trump Media & Technology Group is experiencing a dramatic decline in its market value, losing nearly half of its worth since May 30. The company’s stock (DJT) plummeted another 14% on Thursday, resulting in a total drop of 48% over the past three weeks.
The selloff has significantly impacted the estimated net worth of former President Donald Trump, the leading shareholder and chairman of the company, erasing nearly $3 billion.
The recent acceleration in the stock’s decline followed an announcement from Trump Media that it had received regulatory approval for a move potentially diluting shareholders’ holdings. This regulatory approval has not been received positively by the market, contributing to the steep fall in share price.
Despite the substantial decrease, financial experts caution that Trump Media’s stock may still be overvalued. Jay Ritter, a finance professor at the University of Florida with four decades of experience studying capital markets, commented, “The stock is still wildly overpriced.”
The volatility surrounding Trump Media’s stock highlights ongoing uncertainties and risks for investors. As the company navigates these turbulent times, the market will be closely watching for any signs of stabilization or further decline.
Sources:
- CNN Business
- Financial Times
