Trump's net worth drops $163 million as Trump Media shares fall

Top line

Former President Donald Trump's net worth fell by more than $160 million on Tuesday as shares of Trump Media and Technology Group Corp. fell to their lowest closing price since its IPO in March – continuing a downward trend for the company that owns Truth Social and is looking to expand into streaming TV.

Key data

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Important background

Trump Media went public on March 26 after merging with blank-check firm Digital World Acquisition Corp. Between the merger's announcement in 2021 and the time it went through, shares often traded below $20, but after the merger, Trump Media didn't close below that threshold until last Thursday. Trump Media is often considered a highly volatile “meme stock,” meaning a stock that often becomes popular through social media and whose price changes in response to unprofitable developments, as Trump does on the campaign trail. The company experienced another big drop on August 12, likely related to two things: It released an earnings report with light revenue and Trump returned to Truth Social's rival platform X, formerly known as Twitter, after a nearly three-year absence. Trump was banned from X in 2021 following the Jan. 6 riots, but his account was restored after billionaire Elon Musk bought the platform in 2022. Although he was reinstated on X, Trump had posted only once since his reinstatement, primarily on Truth Social.

What we don’t know

Whether Trump will sell his stake in the company when he becomes eligible to do so later this month. The former president has not indicated he will sell, but the lock-up period that prevented Trump from doing so for the first six months expires on Sept. 25. Lock-up periods are common for company executives and insiders after an IPO.

Large number

3.57 billion dollars. That is the market capitalization of the Trump Media & Technology Group.

More information

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