--- title: "As Truth Social Collapse Continues, Finance Professor Says Its Stock Is Still 1,000 Percent Overvalued" description: "Despite losing most of its value, the stock price for Donald Trump's free-falling Truth Social platform may still be overblown." date: "2024-09-20" modified: "2024-09-20" authors: - name: "Noor Al-Sibai" job_title: "Senior Staff Writer" link: "https://futurism.com/authors/nooralsibai" url: "https://futurism.com/the-byte/trump-truth-social-stock-overvalued" categories: - "Finance" - "Future Society" tags: - "donald trump" - "Stocks" - "the digest" - "truth social" --- # As Truth Social Collapse Continues, Finance Professor Says Its Stock Is Still 1,000 Percent Overvalued ![Despite losing most of its value, the stock price for Donald Trump's free-falling Truth Social platform may still be overblown.]() *\Image: Jeff Kowalsky / AFP via Getty\* ## Blow Out Despite [losing most of its value](), the stock price for Donald Trump's free-falling Truth Social platform may still be hugely overvalued. In an [interview with *ABC News*]() in the wake of the ex-president [claiming he has no plans]() to sell his $1.7 billion stake in his anti-woke Twitter clone, which has reached a [new all-time low]() around $13 per share this morning, University of Florida finance professor Jay Ritter suggested the stock should in actuality be worth far, far less. Having only brought in about $836,000 in revenue last quarter — down 30 percent from last year, which is not the trajectory you want to see in a startup — Ritter told the broadcaster that his calculations based on cash per share suggest the stock is still overvalued by a staggering 1,000 percent. (To be fair, it's not clear which particular snapshot of the stock's decline Ritter was talking about, so maybe after today's continued slide it's only due to fall another 800 or 900 percent.) Despite [already losing a whopping $4 billion]() in valuation, on paper the social network is still somehow valued at around $2.79 billion — a third of the more than [$9 billion market cap it boasted]() when shares were at their highest following the company going public, but still nothing to scoff at. "It’s grossly overvalued," Ritter [told *CNN*]() earlier this month. "It’s hard to come up with a value of the company that is much more than the cash on the balance sheet." ## Meme Queen While Trump claims he's keeping most of his stake, the [share value became lower than ever]() this week as he passed the insider trading ban deadline that could [technically allow him]() to sell at any time. As many have noted before, Truth Social is unusual not just because of the personality behind it, but also because of the way it [operates as a passive indicator]() of [investor-cum-voter confidence]() in the real estate mogul's presidential prospects. "It's much more of a speculative half-proxy for the former president's reelection prospects, and half kind of a long shot early-stage opportunity to get in on a potential new tech company and social media platform," Tyler Richey, a Sevens Report Research analyst, told *ABC.* Between reaching the sell-off date, his [second brush]() with an attempted assassin, and the revelation of his [crappy new family crypto venture](), it's been a no-good very bad week for Truth Social and its infamous founder. And with the way [things are looking]() for his *other* big endeavor, it's increasingly hard to imagine many Truth Social investors coming out ahead in the long run. **More on Trump:** [*As Its Stock Nosedives, Truth Social Sounds Like an Absolute Wreck Behind the Scenes*]() ## Author At Futurism, I've often been drawn to unpacking the narratives that underlie technological, scientific and medical progress, with a special interest in areas of conflict and ambiguity that end up setting agendas and steering the fates of both elites and the hoi polloi. I'm a committed generalist, but I often find myself returning to work involving NASA and the private space sector, the effects of AI on media and society, and the mechanics of the pharmaceutical industry, with a specific focus on the spread of GLP-1 drugs like Ozempic and Wegovy. Prior to Futurism, I worked for publications ranging from Media Matters and Truthdig to Raw Story and Bustle. I'm also the author of "Myspace Scene Queens," a 2024 title in Instar Books' acclaimed "Remember the Internet" series. My work at Futurism has been cited by outlets including the New Yorker, Slate, Nieman Lab, the Verge, the MIT Technology Review, the Sunday Times, and the Daily Beast. I grew up in North Carolina, attended the University of North Carolina at Asheville, and now live in Brooklyn, New York. In my free time, I'm an avid reader and music fan; you can probably find me at a local poetry reading, concert, underground rave, or DJ set. I'm the proud parent of an ineffable orange cat named Mee-Mow. ### Author social links [Bluesky]()