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    • Truth Social Stock is Sliding in the Final Trading Session Before the Election
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    Truth Social Stock is Sliding in the Final Trading Session Before the Election

    Vaseline Posted on

    Topline

    The publicly traded social media company majority owned by former President Donald Trump fell slightly on Tuesday in a tough final trading session before polls closed.

    Key facts

    Shares of Trump Media & Technology Group, traded under the ticker $DJT, referring to Trump’s initials, rose as much as 18.6% to $40.74 by early afternoon, adding more than $600 million to Trump’s fortune at the time. was added.

    But the stock fell sharply in late afternoon trading, turning negative and briefly halting before recovering to a 5% gain to about $36 per share, representing a paper profit of about $210 million for Trump, before hitting 1 % closed at $33.94. causing Trump’s net worth to drop by approximately $40 million on that day.

    Trump’s social media piggy bank now accounts for $3.9 billion of his $6 billion net worth, making him the 540th richest person in the world, according to Forbes estimates.

    Shares of social media site parent Truth Social are still up about 85% in the past month.

    Important background

    Trump owns 57.3% of his namesake company, which began trading as an independent company in March after completing a yearslong reverse merger with blank-check company Digital World Acquisition Corp. Experts largely consider Trump Media a meme stock, meaning its share price can fluctuate wildly, with movements often not reflecting the company’s underlying financial performance like other stocks. The company’s revenue is a fraction of its social media peers, with Trump Media’s revenue in the first six months of 2024 far smaller than Snap and Reddit’s $520 million in the first six months of 2024 Although Trump Media’s market cap of $8 billion is less than half of Reddit and Snap’s respective valuation of $20 billion, the Truth Social parent company trades at an exponentially higher premium than its peers on a revenue basis. with the price-to-sales ratio of 3,996 eclipsing Reddit’s 20P. /S ratio and Snap’s 4 P/S ratio, a measure that compares a company’s market value to its revenue over the four most recent quarters.

    Tangent

    Trump Media’s stock price has moved closely toward the odds of a Trump victory in the gambling market, a rally seen as a show of confidence in Trump to win the election. The stock was trading at $16.50 per share a month ago, when Trump’s odds on the Polymarket betting platform were at 49%, and more than doubled when his betting odds jumped to more than 60%.

    Read more

    ForbesHere’s how much Donald Trump is worthBy means of Daan Alexander
    ForbesHow Donald Trump made billions through politicsBy means of Daan Alexander

    Vaseline
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