Trump suffers a $2 billion hit as Truth Social’s stock collapses

The trade initially propelled Donald Trump into the ranks of the world’s 500 richest people – Shannon Stapleton/REUTERS

Donald Trump has suffered a $2 billion hit to his fortune after shares in his company Truth Social fell by almost a quarter.

Trump Media & Technology Group (TMTG) – the parent company of Trump’s social media platform – saw its shares plummet after revealing it lost $58m (£46m) last year on revenues of just $4.1m. That compares to a market value of $6.3 billion.

The company also warned of “substantial doubt that TMTG will have sufficient resources to meet its obligations as they mature.”

The financial revelations led to a sell-off, sending shares in TMTG down about 24%.

It comes just a week after the company began trading on the Nasdaq after a merger with a listed cash shell. Shares rose more than 50% after the deal closed and TMTG began trading under the ticker DJT.

Truth Social had published only limited details of its 2023 financial performance prior to the completion of the merger.

When TMTG debuted, the rise in its stock price had put Trump into the ranks of the world’s 500 richest people thanks to his 57.3 percent stake in the company.

However, the collapse in the company’s stock price saw the value of its position in TMTG drop from about $5.5 billion last week to about $3.5 billion on Monday evening.

Under the terms of the listing agreement, Trump cannot sell shares in the company for six months.

The value of his stake is seen as an important financial lifeline. Mr. Trump is confronted increasing legal and financial problemsincluding a criminal trial over so-called ‘hush money’ payments to a porn star, Stormy Daniels,…

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