close
close

Apre-salomemanzo

Breaking: Beyond Headlines!

    • Truth Social Stock Slips in Latest Roller Coaster Pre-Election Trading Session
    aecifo

    Truth Social Stock Slips in Latest Roller Coaster Pre-Election Trading Session

    Umito Posted on

    Top line

    The publicly traded social media company, owned primarily by former President Donald Trump, fell slightly Tuesday in a final rough trading session before the election closes.

    Key facts

    Shares of Trump Media & Technology Group, trading under the symbol $DJT after Trump’s initials, were up 18.6 percent at $40.74 in early afternoon trading, worth more than $600 million. dollars of Trump’s net worth at the time.

    But the stock suffered a sharp decline late in the afternoon, turning negative and briefly reaching arrested before returning to a 5% gain at around $36 per share, equating to a paper gain of around $210 million for Trump, before closing down 1% at $33.94, lowering the Trump’s net worth of approximately $40 million on the day.

    Trump’s social media nest egg is now $3.9 billion of his $6 billion net worthwhich makes him the 540th richest person in the world, according to Forbes estimates.

    Shares of social media site Truth Social have gained about 85% again over the past month.

    Key context

    Trump owns 57.3% of his namesake company, which began operating as an independent company in March after completing a years-long reverse merger with Digital World Acquisition Corp., a blank-check company. Experts largely consider Trump Media is a meme stock, which means its stock price can fluctuate wildly, with moves that often don’t reflect the company’s underlying financial performance like other stocks. The company’s sales are just a fraction of those of its social media peers, with Trump Media’s $1.6 million in revenue in the first six months of 2024 falling well short of $2.4 billion from Snap and $520 million from Reddit over the period. Although Trump Media’s $8 billion market cap is less than half the respective $20 billion valuation of Reddit and Snap, parent company Truth Social trades at an exponentially higher premium than its competitors based on in revenue, with its price-to-sales ratio of 3,996 eclipsing Reddit’s 20P. /S and Snap’s 4P/S ratio, a metric that compares a company’s market value to its revenue over its most recent four quarters.

    Tangent

    Trump Media’s stock price has moved closely in line with the betting market’s odds of a Trump victory, a rally seen as a vote of confidence in Trump to win the election. The stock was trading at $16.50 per share a month ago, when Trump’s odds on betting platform Polymarket stood at 49%, and more than doubled when his betting odds soared to more than 60%.

    Further reading

    ForbesThis is how much Donald Trump is worthBy Dan Alexandre
    ForbesHow Donald Trump Made Billions From PoliticsBy Dan Alexandre

    Umito
    View all posts

    You Might Also Like