Trump’s Net Worth Plummets by $2.4 Billion as Social Media Stock Implodes Ahead of Election

Truth Social’s Stock Faces Volatile Decline as Election-Driven Hype Fades

In a stark financial turn, former President Donald Trump has seen his net worth drop by a staggering $2.4 billion in just three days after a sharp decline in the stock price of his social media platform, Truth Social. Trump Media & Technology Group (TMTG), which owns Truth Social, experienced a massive market valuation loss as its share price fell by 41% following recent spikes tied to Trump’s potential election outcomes rather than company performance.

The dramatic downturn, beginning Wednesday with a 22% loss, continued Thursday with a 12% drop, and plummeted another 14% on Friday — marking Trump Media’s worst one-day drop since it went public in March. As of Tuesday’s closing bell, shares were priced at $51, giving Trump’s dominant stake in the company a valuation of approximately $5.9 billion. By Friday, however, that valuation had fallen to $3.5 billion, cutting $2.4 billion from Trump’s net worth within 72 hours.

Stock Tied to Election Speculation, Not Fundamentals

Truth Social’s share value has fluctuated wildly in recent weeks, driven primarily by speculative traders viewing the ticker “DJT” as a de facto wager on Trump’s electoral prospects. The recent sell-off reflects prediction markets favoring Vice President Kamala Harris over Trump in the race, even as polls suggest the race remains competitive. Analysts warn that stocks like DJT — which have gained popularity as “meme stocks” in recent years — are susceptible to dramatic shifts in market sentiment.

“Meme stocks, of which DJT is one, are very susceptible to momentum shifts,” said Steve Sosnick, chief strategist at Interactive Brokers. “Last week’s spike in prediction markets was a boon to DJT; conversely, a shift away would hurt the stock.”

Indeed, Truth Social has minimal revenue to support its lofty valuations. The platform has generated just $1.6 million in revenue this year, a fraction of the earnings seen by major media companies. Yet as of last Tuesday, Truth Social’s valuation briefly soared to $10.3 billion, placing it above Paramount Global, despite its limited user base of approximately 698,000 monthly active U.S. users. Comparatively, the Elon Musk-owned platform X, formerly known as Twitter, has around 70 million monthly U.S. users, according to Similarweb data.

A Cautionary Tale in Volatility

With little fundamental value to anchor the stock, Truth Social’s valuation has become increasingly volatile. Over the last few months, speculative trading has turned the stock into a financial roller coaster. The sudden momentum shift comes after a rapid, five-week spike where the stock quadrupled, largely driven by hype around Trump’s election prospects. For investors, this volatile pattern highlights the inherent risks of meme stocks — financial instruments that can gain and lose substantial value based primarily on market trends and speculative bets.

“It’s like a game of musical chairs. Everyone is happy when the music is playing and the stock is going up,” noted George Kailas, CEO of Prospero.ai. “But since it isn’t based on any kind of good tangible value, the second that stops, everyone panics…and the bottom falls out.”

Experts anticipate further volatility ahead as markets react to polling updates and shifting sentiment toward the upcoming election. For now, however, the dramatic drop in Truth Social’s stock has underscored the precarious nature of hype-driven investments, leaving Trump’s media company to face uncertain waters amidst the turbulent landscape of meme stocks and election speculation.