The Hits Just Keep Coming for Trump on Truth Social Value
Donald Trump’s social media venture, Trump Media & Technology Group, debuted on the stock market in late March with a strong initial public offering of nearly $80 a share. Today? It’s less than half that, trading at just under $33. The company’s slide began shortly after it debuted, when its 2023 filings with the Securities and Exchange Commission were released. They showed only $4.1 million in revenue, coupled with a loss of a whopping $58 million. Days later, two of TMTG’s investors pleaded guilty to insider trading in connection to one of the major sources of the company’s value: its merger with Digital World Acquisition Corporation.Since then, Trump Media’s stock has continuously plummeted, losing close to $2.7 billion. Not coincidentally, Donald Trump fell off the Bloomberg Billionaires Index, which ranks the 500 richest people in the world every day. His bragging about the stock last week didn’t help at all and may have even violated SEC rules. In the past, Trump has hardly ever dealt with the SEC, since his businesses are usually privately held, and it’s showing. As Timothy Noah wrote for The New Republic last week, “It’s much harder to lie to the SEC than it is to lie to a bank or insurance company about a privately held business.”Trump has a number of legal debts that he can’t begin to pay without the help of surety firms with questionable reputations. He also can’t dump or borrow against his Trump Media stock without the permission of his board for six months. And with the stock sliding further every day, he may not see much of a windfall by then, anyway.
Donald Trump’s social media venture, Trump Media & Technology Group, debuted on the stock market in late March with a strong initial public offering of nearly $80 a share. Today? It’s less than half that, trading at just under $33.
The company’s slide began shortly after it debuted, when its 2023 filings with the Securities and Exchange Commission were released. They showed only $4.1 million in revenue, coupled with a loss of a whopping $58 million. Days later, two of TMTG’s investors pleaded guilty to insider trading in connection to one of the major sources of the company’s value: its merger with Digital World Acquisition Corporation.
Since then, Trump Media’s stock has continuously plummeted, losing close to $2.7 billion. Not coincidentally, Donald Trump fell off the Bloomberg Billionaires Index, which ranks the 500 richest people in the world every day. His bragging about the stock last week didn’t help at all and may have even violated SEC rules.
In the past, Trump has hardly ever dealt with the SEC, since his businesses are usually privately held, and it’s showing. As Timothy Noah wrote for The New Republic last week, “It’s much harder to lie to the SEC than it is to lie to a bank or insurance company about a privately held business.”
Trump has a number of legal debts that he can’t begin to pay without the help of surety firms with questionable reputations. He also can’t dump or borrow against his Trump Media stock without the permission of his board for six months. And with the stock sliding further every day, he may not see much of a windfall by then, anyway.
