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The net worth of former U.S. President Donald Trump has fallen by an estimated $1 billion, largely due to a 21% drop in the value of his shares in Truth Social, his social media company, a report by Bloomberg confirmed.
Truth Social, which was launched in early 2022, has not achieved the expected growth and revenue targets, leading to the decline in its valuation.
Filings from Trump Media & Technology Group revealed that the company has incurred losses of over $58 million since 2023 began. This news came as a shock to the market, especially since it was announced less than a week after the company’s highly publicized merger.
The stock had initially soared during its March 26 launch, buoyed by retail investor enthusiasm, including strong support from Trump’s followers, pushing the former US President’s net worth to $7.2 billion. However, Monday’s disclosure swiftly reversed this trajectory, causing shares to plummet by $13.30, or 21%, settling at $48.66. Trump owns about 57% stake in the company.
The reports emphasize that Truth Social had been overvalued, attributing the stock’s decline to its lack of a clear path to profitability and minimal revenues.
