Trump's "Truth Social" Stock Crashes as Soon as Market Opens

"The victims here are willingly opening their bank accounts, and when it crashes to earth they’ll thank Trump for the privilege of being shaken down."

Celebrity Apprentice

Former president Donald Trump's meme stock is in deep, deep trouble.

Shares of Trump Media & Technology Group (TMTG) are getting absolutely hammered this morning, sliding a further nine percent as soon as the markets opened.

Shares of the group have been tanking ever since it merged with a blank check acquisition company last month, nearly halving in price since their peak after debuting.

Meanwhile, an incensed Trump tried to rally the troops, reiterating last week that he'll double down and continue to use Truth Social, a far right social media platform owned by TMTG.

The crash, long predicted by analysts, clearly indicates that investors are unloading the astronomically overvalued stock. While the merger gave TMTG a massive multibillion-dollar valuation, Truth Social made a pitiful $4.1 million in revenue last year, while losing $58 over the same period.

At the time of writing, shares are hovering around just $36, well below the price at the merger. The debacle has already wiped out billions of dollars in value, including well over $1 billion of Trump's own net worth.

Pump and Run

The merger is more than likely yet another Trumpian scheme designed for the former president to get away with millions while leaving investors hanging.

But whether Trump's most ardent supporters, who are willing to spend their hard-earned cash on what amounts to a charitable donation and not a long-term investment, will care is another matter entirely.

As political commentator Paul Waldman wrote in an opinion piece for MSNBC, "the victims here are willingly opening their bank accounts, and when it crashes to earth they’ll thank Trump for the privilege of being shaken down."

"For them, losing their shirts in a failed Trump venture isn’t a reason to feel betrayed or outraged," he added. "It’s a privilege, and they couldn’t be happier to do it."

In other words, Trump's supporters are willing to go along with a highly dubious venture that has all the hallmarks of a pump and dump.

"I mean, it’s ridiculous," Barry Diller, chairman of holdings company IAC and Expedia, told CNBC last week. "The company has no revenue."

"It’s a scam, just like everything [Trump's] ever been involved in is some sort of con," he added.

More on TMTG: Trump Seethes as Truth Social's Stock Price Gets Absolutely Hammered