Shares of Trump Media & Technology Group, the firm responsible for the social media platform Truth Social, saw a continued decline on Monday. The stock, associated with former President Trump, experienced a significant drop for the second day in a row. About two weeks after its highly anticipated launch, Truth Social’s shares are now plummeting, erasing billions from Trump’s investment. The company, which operates Truth Social, witnessed an 8% decrease on Monday following a 12% drop on Friday.
The Decline of Trump Truth Social Platform
Since its trading debut on March 26, the Trump Truth Social platform has experienced significant volatility, with sharp declines in the past two days. This has led to a notable decrease in Trump’s paper gains, as the former president’s majority stake in the company dropped from a peak of over $6 billion to about $2.9 billion on Monday.
Despite the eyebrow-raising valuation of Trump’s stake, which remains high considering Trump Media’s financial losses of $58 million last year and revenue of just over $4 million, the platform’s shares continue to trade at their lowest level since the debut.
As per his current agreement, Trump is restricted from selling his shares until September, although he has the option to request permission from Trump Media’s board to sell some of his stake earlier. Notably, the board comprises individuals closely associated with Trump, including his son, Donald J. Trump Jr., and former administration officials.
Analysts have warned that the trading of Trump Media shares does not accurately reflect the company’s financial performance. However, the sustained trading activity is attributed to the support of numerous individual investors, many of whom are believed to be ardent Trump supporters.
For more information on the Trump Truth Social platform, please visit our site 60time.com. And don’t forget to follow us on social media at Facebook.
