Truth Social stock takes a tumble as Trump makes his X return

The former president’s net worth sinks by another $170m thanks to falling price of Trump Media & Technology Group stock

Shares in Donald Trump’s social media company fell to their lowest price in months on Monday, hours after the former president revived his long-dormant X account to promote his “interview” with Elon Musk.

Trump Media & Technology Group stock fell by 6 percent on Monday to $25 per share, plummeting toward its lowest closing share price since April.

The former president — who has a roughly 65 percent stake in the company — saw his net worth sink by another $170m thanks to falling stock, according to Forbes. The company, which trades as DJT, has routinely seen its stock prices whiplash over the last few months as the former president’s fortunes are tied to his campaign, criminal cases and massive legal liabilities.

Monday’s drop also followed the company’s latest earnings report with the Securities and Exchange Commission, which showed Truth Social’s parent company earning less than $1m in revenue with more than $16m in losses within the second financial quarter of 2024.

In announcing its quarterly SEC filing on Friday, the company said its net losses largely stemmed from more than $8m in legal expenses following its much-hyped March merger and another $3m from expenses tied to a streaming service that is set to roll out this year.

“With the introduction of TV streaming in August 2024, the Company believes that it has laid the foundation for a core driver of long-term revenue and value,” the company said in a press release accompanying Friday’s filing. “With its strong balance sheet and zero debt load, the Company believes it has sufficient working capital to fund operations for the foreseeable future.”

The parent company for Donald Trump’s Truth Social saw stocks plummet on August 12 after he agreed to join rival platform X for an appearance with owner Elon Musk. (AP)

DJT stock has widely been seen as a “meme stock,” with shares driven by individual investors rather than any other market factors, but one that could spark interest more broadly, thanks to Trump’s campaign and potential victory, and his attempts to tap into cryptocurrency.

With the platform’s official launch two years ago, Trump at the time said the company would “stand up to the tyranny of Big Tech,” viewed among right-wing figures as too constrictive or conspiring to remove their views after users were kicked off for other platforms for violating their terms of service about disinformation, violence and harassment.

Truth Social has become his de facto campaign messaging site, where he can draw headlines for his statements and command an audience of more than 4 million people on the platform.

Trump Media began trading in March after completing a yearslong plan to merge with a shell company, Digital World Acquisition Corp., that could take it public.