(CNN) — Former President Donald Trump’s social media shares plummet just before the election, significantly reducing his net worth.

After a absurd point Over the past five weeks, which hinged entirely on Trump’s perceived re-election prospects — and had nothing to do with the company’s actual business — Trump’s stock on social media has plummeted. It has now lost around 41% of its value in just three days.

The stock price of Truth Social owner Trump Media & Technology Group plunged another 9% on Friday after falling 12% on Thursday and 22% on Wednesday – Trump Media’s worst one-day loss since its listing on the stock market in March.

After the closing bell Tuesday, shares were trading at $51, valuing Trump’s controlling stake in the company at about $5.9 billion. On Friday, the value of Trump’s stock dropped to $3.5 billion. That means Trump has lost $2.4 billion in net worth since Tuesday.

Shares of Trump Media, trading under the symbol “DJT,” became a an indicator of how traders think the presidential election will play out. In recent days, prediction markets have moved toward a projection that Vice President Kamala Harris will win the election, even though polls clearly show a toss-up election with no clear front-runner.

“Meme stocks, of which DJT is one, are very sensitive to changes in dynamics,” said Steve Sosnick, chief strategist at Interactive Brokers, who noted a clear “shift in mood” in market forecasts in recent days . “Last week’s rise in prediction markets was a boon for DJT; conversely, a move away would harm the title.

Company fundamentals have nothing to do with why the stock is traded. Trump Media has not published any major news that could explain this drop.

“Remember, this action is fundamentally a binary, leveraged election bet,” Sosnick said. “If he wins, then there is good reason to increase his value. If he loses, the company will return to being a barely profitable business with meager revenues. »

Trump Media shares have been extremely volatile throughout the year. But between September 23 and the closing bell on Tuesday, Trump Media’s value quadrupled.

These huge gains brought Trump Media’s value to $10.3 billion as of Tuesday’s close. This means that it was briefly worth it more than the default value ofthe social network owned by Elon Musk, formerly known as Twitter.

This is despite the fact that X has around 70 million monthly active US users across iOS and Android, according to Similarweb data shared with CNN. That’s about 100 times Truth Social’s 698,000 active monthly users in the United States.

Even Threads, Meta’s relatively new competitor X, has about 20 times the user base of Truth Social, according to Similarweb.

Trump Media’s fundamentals remain very modest for a company still valued at around $6 billion. As a reminder, CBS owner Paramount Global, a company that Trump Media recently surpassed in market value, has generated more than $14 billion in revenue so far this year.

But Trump Media only generated $1.6 million in revenue this year.

George Kailas, CEO of Prospero.ai, a research platform that helps traders gather market intelligence, told CNN on Friday that he was not surprised by Trump Media’s sudden change in dynamics because it This is what happens with meme stocks.

“It’s like a game of musical chairs. Everyone is happy when music plays and stocks go up,” Kailas said. “But because it’s not based on any sort of good tangible value, the second it stops, everyone panics…and the bottom falls out.”

(Copyright (c) 2024 CNN. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.)