The parent company of Donald Trump's social network, Truth Social, has experienced an unprecedented roller coaster ride on the US technology market Nasdaq since the end of March. The company's shares, which trade under the symbol DJT, have plummeted after a bright start. According to a report by “NZZ”, the success of Truth Social is closely linked to Trump's political destiny.
Significantly reduced: Truth Social is losing massive value
Truth Social, which is now controlled by Trump's Trump Media & Technology Group (TMTG), reached a market capitalization of $9 billion after the IPO. However, following the recent share price decline, the company's value has fallen to $3.6 billion. “An adverse outcome of one or more proceedings may have a negative impact on TMTG,” the company admitted to the US Securities and Exchange Commission (SEC).
This also appears to have an impact on Trump's personal wealth. Since he owns 57 percent of TMTG, his stake was worth more than $5 billion at the beginning of the month. Now it's only two billion dollars. But the former US president and his company appear to be experiencing financial difficulties. The “NZZ” reports that TMTG recently announced that it “does not have the financial resources necessary to maintain its operations for a reasonable period of time.”
Trump is fighting legal and economic turmoil
Trump also urgently needs money. In addition to his company's financial problems, he is personally involved in four criminal cases and one civil fraud case, which are generating high costs. What happens next with Trump and his company could be decided in the coming months. While Trump's influence on the campaign trail is likely to be limited by his legal disputes, a victory in the US presidential election in the fall could change things for him and his company.
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