Donald Trump’s tiny social media empire has seen its extraordinary stock market rally wiped out by a steep sell-off.
Shares in Trump Media & Technology Group, owner of Truth Social, closed below $17 on Wednesday, reversing all their gains since the company’s rapid rise took hold in January.
The former president has been prohibited by a lock-up agreement from starting to sell shares in the firm until late September. While his majority stake in the firm is still worth some $2bn on paper, its value has fallen dramatically from $4.9bn in March.
As a business, TMTG is not growing rapidly. It generated sales of just $4.13m in 2023, according to regulatory filings, and lost $58.2m.
Nor is Truth Social growing rapidly as a platform. While TMTG has not disclosed the size of its user base, the research firm Similarweb estimated that in March it had 7.7m visits – while X, formerly Twitter, had 6.1bn. That same month, however, TMTG was valued at almost $10bn on the stock market.
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