Trump Loses $4 Billion as Truth Social Stock Crashes

Ouch.

Wipe House

The value of former president Donald Trump's Truth Social meme stock has cratered — in a drop that's wiped out a whopping $4 billion of Trump's personal 114.75 million share stake before he's even free to sell the dodgy stock.

Shares of Trump Media & Technology Group hit an all-time low last week, dropping below $18. That's a tiny fraction of what they were worth after the company merged with a blank check acquisition company in March, when they initially spiked to nearly $70 per share.

In just ten days, Trump will have a big decision to make. September 19 marks the end of a six-month lockup period, which means he'll be free to sell off his stake, which could bludgeon the value of the already-eviscerated stock even further.

But whether Trump will sell remains unclear. Now that TMTG shares have sunk to all-time lows, it's not exactly a lucrative time to get out. Besides, selling would almost certainly crash the stock even further.

At the same time, whether the company will ever manage to recover from the last couple of weeks is anything but certain, meaning that Trump may be out to sell regardless, leaving his loyal investors to suffer the consequences.

Take a Hint

The company's recent slide was expedited by a number of executives selling off millions of dollars worth of shares, including CEO Devin Nunes, COO Andrew Northwall, and CFO and treasurer Phillip Juhan.

Despite its much lowered stock price, the company's multibillion-dollar valuation is still astronomically overvalued. The company has yet to find a viable business plan and is bleeding money at an alarming rate, raking in a mere $4.1 million in revenue last year while losing a staggering $58 million over the same period.

Trump himself has picked up posting on competitor X-formerly-Twitter again, leaving his degree of commitment to the project hazy.

The company is also embroiled in several lawsuits, including one filed by two former "The Apprentice" contestants, who argue they're entitled to far more Trump Media shares.

Analysts are unsure what to expect when it comes to predicting the former president's next move.

"Investors are probably looking for a hint," University of Cambridge accounting professor Alan Jagolinzer told the New York Times. "I might expect to see him say he is going to sell over a specific time period, so the market is aware of it and the market can adjust."

Many of the company's investors, among them some of the staunchest MAGA supporters out there, are adamant that Trump wouldn't just turn his back on them — despite a calamitous six-month run on the stock market.

"He has no reason to sell, because he doesn’t need the money," one particularly gullible investor and self-described day trader told the NYT. "I don’t think he’s that stupid to hurt his loyal base of supporters."

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