TMTG, which owns Trump’s Truth Social, needs to build a real business to deliver sustained stock-price gains, experts said.
Donald Trump’s meme stock skyrocketed in March but has now crash-landed.
Experts say its explosive rise and dramatic fall show how powerful people can wield their influence to create vast amounts of stock-market wealth — but it doesn’t last long without a real business behind it.Blasting off, crashing down
Trump Media & Technology Group owns Truth Social, the former president’s social-media platform. The parent company recently went public via a SPAC merger, and its stock surged as high as $79 on March 26.
That price valued TMTG at about $11 billion — roughly 2,700 times the $4.1 million of revenue it posted last year, which fueled a $58 million net loss.
However, a disappointing performance update and plans to issue shares have pulled the stock down by about 70% from its peak to just below $23 at Tuesday’s close. The company’s market value is now about $3 billion.
Trump, who owns at least 58% of TMTG, saw the value of his stake balloon to over $6 billion then plummet below $2 billion in under a month.
The former president briefly joined the Bloomberg Billionaires Index, and even secured a spot among the top 300 wealthiest people in the world.
