Since Vice President Kamala Harris announced her 2024 presidential bid on July 21, Truth Social’s value has fallen by$ 900 million. The stock of Trump Media &, Technology Group, which owns Truth Social, has fallen by about 23 % in that period, including a notable drop on Thursday, as reported by CNN.
On July 19, before President Joe Biden’s exit from the race and endorsement of Harris, Trump’s stake was valued at just over$ 4 billion. By Thursday, the price had fallen to roughly$ 3.1 billion. The volatility of Trump Media’s share price, which has been greatly influenced by political improvements and market fluctuations, is at the heart of this decline.
The new downturn highlights the importance of the stock as a gauge for Trump’s possible presidential run, with Truth Social projected to play a crucial role in his communications strategy if elected. Investment sentiment has been further impacted by polls that show a close race between Trump and Harris.
Following Biden’s subpar conversation performance, Trump Media briefly increased its stock in June, and Trump Media did so last month as a result of Trump’s recovery from a murder attempt in Pennsylvania. However, the organization has faced frequent problems.
Truth Social’s customer relationship has been declining. Data from Comscore, cited by CNN, reveals that unique visitors to the system fell by 38 % year-over-year in June, marking its third consecutive month of drops.
Trump Media’s property, which went public in late March, has experienced severe uncertainty, with analysts comparing it to a “meme property” driven by business debate rather than good economic performance. Despite the decline, Trump Media remains valued at$ 5.1 billion.
Trump retains considerable power over the company, holding 114.75 million securities and serving as president, while Truth Social remains a small person in the social media environment. Bloomberg estimates Trump’s net worth at$ 5.9 billion. In contrast to well-known companies like JetBlue, which is valued at$ 2.2 billion but generated 2,300 times more revenue, critics claim that Trump Media’s high valuation is not supported by its modest revenue of$ 4.1 million last year.
