Trump’s name got removed from the list after the stock price of his social media company, Truth Social, plummeted recently. The company’s shares nosedived by 12% on Friday, followed by an 8% drop on Monday and a further 4.8% decrease on Tuesday before a slight recovery to close at $37.47, indicating a modest 0.8% rise for the day. However, this marked a substantial drop of over 50% from its peak in late March. The decline came after Trump Media merged with Digital World Acquisition Corp and started trading under the ticker DJT on March 26, as per a report by USA Today.
This downward trend in stock value has resulted in a significant reduction in the market worth of Trump Media, which initially stood at nearly $8 billion post its market debut. Trump, holding approximately 60% of the company’s shares amounting to 78.75 million, saw the value of his stake surge to around $6 billion post the IPO, briefly earning him a place on the Bloomberg Billionaires Index.
However, recent evaluations estimate Trump’s stake to be closer to $3 billion, substantially impacting his total net worth, which Forbes pegged at $4.8 billion on Tuesday afternoon, ranking him as the 653rd richest individual globally. This figure falls below the minimum net worth requirement for listing on the Bloomberg Index, which currently stands at $5.81 billion.
The fluctuating stock prices of Trump Media have mirrored significant variations in Trump’s net worth, with recent valuations showing a company worth of $5 billion. This valuation starkly contrasts with the company’s financial performance in 2023, reporting a loss of over $58 million against a revenue of $4 million. Critics contend that Trump Media is overvalued compared to other social media platforms, attributing its inflated value to investments from Trump supporters.
An audit firm had previously raised concerns about the company’s substantial operating losses, casting doubts on its long-term sustainability. Despite criticisms, Trump remains steadfast in his support for the company on Truth Social, underscoring its stability and growth potential, expressing confidence in its future prospects.