Former president Donald Trump lost $1.3 billion of his net worth in a single day after his social media stock took a massive dive.

The Trump Media & Technology Groupthe owner of Social truthsaw its share price fall 22.3 percent on Wednesday. It was the company’s worst daily loss since its IPO in March. CNN noted.

The stock closed above $51 on Tuesday, with Trump participating in the company valued at $5.9 billion. That figure had fallen to $4.6 billion by the end of Wednesday, a drop of $1.3 billion.

It’s still unclear exactly what caused the stock price to drop. Trump Media has not shared any major announcements that could explain the slowdown. The stock price has become a barometer of how some traders think the election will go.

A number of traders blamed the drop on technical issues and a decrease in momentum in the meme stock.

But the stock has been volatile throughout this year and you don’t need official company announcements to see moves up or down.

From September 23 until the close of trading on Tuesday, the stock’s value quadrupled, driven by Wall Street bets that Trump would win Tuesday’s election.

The increase helped Trump Media’s valuation climb as high as $10.3 billion before the close Tuesday, meaning it was worth more than Elon Musk’s X for a short period of time. X has lost 80 percent of its value since the billionaire bought it, Loyalty valued.

X has approximately 70 million monthly active users in the United States, compared to Truth Social’s 698,000 monthly active users in the United States.

Threads, the recent addition to the field of microblogging apps, has 20 times the number of users of Truth Social, Similarweb found.

Trump Media’s value is not based on its business fundamentals: It recently surpassed Paramount Global, the owner of CBS, in terms of market value.

While Paramount generated $14 billion in revenue this year, Trump’s media raked in $1.6 million.

Dan Ives, senior equity analyst at Wedbush Securities, told CNN: “Fundamentally, valuation is a real headache, but we’ve seen other meme stock stories like AMC and GameStop follow similar paths in recent years. »

He added: “Truth Social is only a fraction of X and other social media platforms in terms of users, but with an election a week away, this stock has become a litmus test for some investors in the race at the White House. »