ALBAWABA - In the course of a turbulent week for Trump Media & Technology Group (TMTG), the stock price of the Donald Trump's firm saw dazzling highs and lows, which ultimately culminated in the loss of about $1.3 billion from the net worth of the former president and running candidate, CNN reports.
With its shares nose-diving from a high of $54.68 to $35.34, the firm behind the Truth Social app, trading under the symbol DJT, witnessed a loss of 31% percent of its market value in only two days, sparking questions about the market resiliency of the company, according to CBS News.
On Wednesday alone, the share price saw a plunge of 22%, marking its worst single-day loss since it went public in March, followed by a further decline of 11.7% on Thursday.
In light of this sharp turnaround, some analysts have drawn comparisons between DJT to other "meme stocks" like AMC and GameStop, whose shares have likewise been influenced by speculative trading rather than solid financial results, as reported by CNN. In reality, TMTG has only made $1.6 million this year, despite reaching a value of almost $10 billion during the uptick.
Following the sell-off, Trump's personal interest in TMTG, which amounted to around 115 million shares or over 60 percent of the firm, sustained quite a bit of loss. Trump's stake, which reached its highest point on Tuesday at $6.3 billion, is now worth approximately $4 billion.
despite the recent ending of a lock-up period that would have allowed him to sell his shares, Trump maintained that he would not sell his stakes, regardless of the setbacks encountered, as If a significant portion gets sold, it may result in an increase in the market's supply, which in turn would drop prices even further, as CBS reports.
