After his party suffered a historic defeat in this week’s midterm elections, president Donald Trump’s Truth Social is following suit.
Shares of the social media platform’s parent company, Trump Media & Technology Group (TMTG), hit an all-time low after Trump’s candidate picks were roundly rejected by American voters. As it turned out, investors weren’t finished. Shares plummeted another ten percent on Thursday, compounding major losses. The stock temporarily even dropped below the $4 mark, a dismal abyss after the $80 share price the company recorded in March 2024 shortly after merging with a blank check acquisition company to go public.
Given the company’s catastrophic financials — TMTG reported a staggering $238 million loss while making less than $2 million — it’s perhaps the clearest sign yet that the venture is more an indicator of Trump’s popularity than a viable business.
Now that the president’s approval rating is at a record low, hovering at just 33 percent as his party gets shellacked nationally, it’s no wonder his social media play isn’t faring much better.
As it became clear that it wasn’t picking up much actual market share as a Twitter clone, the company made various efforts to pivot to everything from prediction markets to a war chest of rapidly depreciating Bitcoins. It even merged with a nuclear fusion company this year. But none of those efforts have gained any visible ground.
Worse yet, some of the president’s most loyal supporters — who agreed to lend his firm money despite it incurring massive losses — feel disillusioned. Investor and oil and gas engineer Chad Nedohin told the New York Times that he feels betrayed, claiming that TMTG strayed too far from its purported mission of promoting free speech.
He’s since sold most of his shares.
“The early shareholders did the right thing for the right reason, but it is devastating that Trump is not the person we thought,” he told the newspaper.
More on Trump Media: Truth Social Stock Crashes to All-Time Low After MAGA’s Massive Defeat