:quality(75)/cloudfront-us-east-1.images.arcpublishing.com/elcomercio/XVSFIB6JDJFO5N5IUI7DFCSFWI.jpg)
On Monday, former President Donald Trump experienced a significant decrease in his net worth following a sharp decline in shares for his social media company, Trump Media & Technology Group. The company’s stock plummeted by as much as 26% after reporting a net loss of $58 million and revenue of just $4.1 million in an SEC filing. This drop in stock price resulted in a decline of over $1 billion in Trump’s net worth.
Trump’s net worth had recently experienced a massive increase after Trump Media went public on March 26. The company’s shares surged by 59% on the first day of trading, boosting Trump’s net worth by over $4 billion, according to Bloomberg. However, the six-month lock-up period prevents Trump from selling any of his shares in the company until the expiration of this period.
Despite the hype surrounding Trump Media’s launch, the company’s core product, Truth Social, has struggled to gain traction. The platform has significantly fewer monthly active users compared to major social media platforms like Facebook and Twitter, primarily attracting Trump supporters. Monday’s stock rout was a setback for Trump, who was expecting a substantial windfall from his stake in the company.
The financial strain on Trump has been mounting, with legal debts becoming a pressing concern. On Monday, he posted a $175 million appeal bond in his New York civil fraud case, following a reduction from the original $454 million amount. Additionally, Trump has been ordered to pay $83.3 million in defamation damages to E. Jean Carroll, a writer who accused him of sexual abuse in 2023. Despite the challenging financial circumstances, representatives for Trump did not respond to requests for comments outside regular business hours.
Trump Media & Technology Group has struggled since its launch due to its core product’s failure to attract enough users outside of its target audience – primarily trump supporters – despite being marketed heavily prior to launching publicly.
Trump’s net worth had increased dramatically after Truth Social went public on March 26th when its shares surged by an impressive 59%, boosting his net worth by over $4 billion according to Bloomberg.
However, with only six months before he can sell any stocks from his portfolio due to lock-up rules – this sudden drop is now putting additional pressure on him as he looks at potential losses totaling over $1 billion.
It appears that legal troubles are also piling up for Mr., with an appeal bond posted on Monday for his New York civil fraud case totaling over $175 million and being reduced from its original amount of $454 million.
Additionally, Mr., is facing defamation damages totaling over $83 million from writer E Jean Carroll who accused him of sexual assault back in 2023.
