Trump Net Worth ‘Tanks’ After He Sadly..

CNN anchor Wolf Blitzer and correspondent Matt Egan discussed the significant financial setbacks faced by former President Donald Trump’s media company, Trump Media and Technology, following his felony convictions. Initially, the company’s stock soared upon its NASDAQ debut but quickly plummeted after negative financial disclosures. Egan attributed the latest decline to Trump’s convictions in the Stormy Daniels hush money trial, where he was found guilty on all 34 felony counts.



During Friday’s CNN Newsroom segment, Blitzer highlighted that Trump Media’s parent company had lost roughly half its value since Trump’s convictions, impacting the former president’s net worth. Egan elaborated, describing the company’s stock as in “free fall mode,” having dropped over 50% in just three weeks. He pointed out that recent regulatory decisions allowing additional stock purchases had further unsettled investors, despite the potential for raising capital.

Egan cautioned against assigning rational market behavior to Trump Media’s stock, noting it functions more as a meme stock driven by hype rather than solid fundamentals. Despite its high valuation in the billions, the company generates minimal revenue, less than $800,000 in the first quarter, which Egan emphasized is vastly disproportionate to its market worth.

Finance expert Jay Ritter, whom Egan consulted, characterized Trump Media’s stock as “wildly overpriced,” considering its modest revenue and limited influence compared to major social media platforms like Reddit, Elon Musk’s X, and Instagram. Egan concluded by underscoring the substantial decline in Trump’s personal stake in the company, from about $6 billion to approximately $3 billion, as a result of the ongoing stock sell-off.

WOLF BLITZER: Since Donald Trump’s felony convictions in New York three weeks ago, Truth Social’s parent company have lost roughly half its value.

Trump Media’s stock prices have been rapidly dropping since May, dealing a huge blow to the former president’s net worth!

CNN reporter Matt Egan is joining us right now. Matt, Truth Social is hurting right now big time. What is happening?

MATT EGAN: Well, this is a stock that is basically in free fall mode right now. Trump Media was trading above 50 bucks as recently as May 30th.

Of course, that’s the day that Donald Trump was convicted here in New York. And within seconds of that conviction, we saw the stock price plunge and it’s just snowballed.

Since then, this company has now lost over half of its value in just three weeks. It’s staggering losses!

The spark for this week’s sell -off was the fact that regulators gave a green light to investors who own what’s known as warrants to buy extra stock in this company. It’s a move that could allow Trump Media to raise extra money, but it’s also going to water down existing shareholders. And that has spooked some investors.

I don’t want to assign too much logic here, though, to the stock moves, because remember, experts have said that Trump Media is basically a meme stock. It is trading on hype and momentum, not fundamentals. It’s valued in the billions of dollars, even though it generates very little revenue.

Now, no matter the cause, this sell -off has wiped out a huge chunk of the value of the stock of the company’s chairman and leading shareholder, Donald Trump.

This stake was worth about $6 billion as recently as three weeks ago. Now it’s down to around $3 billion. And the selling may not be done.

I spoke to Jay Ritter. He’s a finance professor at the University of Florida. He’s been studying capital markets for 40 years. And he said, despite this sell -off, this stock is still, quote, wildly overpriced.

Remember, its main product is the conservative social network through social. It’s a very tiny player in social media. It is dwarfed in terms of the number of users by its rivals, including Reddit, Elon Musk X, and even Instagram’s threads.

And Trump Media, it generated less than $800 ,000 in revenue in the first quarter. That is very tiny. Normally, a company with that kind of revenue is valued in the millions of dollars, not the billions.

Harrison Carter
Harrison Carter
Harrison Carter has been a huge pro wrestling fan since 2002, and it's been his first love ever since then. He has years of writing experience for all things pro wrestling. His interests outside of wrestling include films, books and soccer.

Related Articles

Latest Articles