Donald Trump has seen more than £400 million of his fortune wiped out
Taking a hit: Donald Trump owns a 65 percent stake in the company
Donald Trump saw more than £400 million of his fortune wiped out yesterday as shares in his social media company fell in the wake of his criminal conviction.
New York-listed Trump Media & Technology (TMT) fell as much as 9 percent in choppy trading a day after he was found guilty of falsifying documents to cover up hush money payments to porn star Stormy Daniels.
The former president owns a 65 percent stake in the company, which operates his social media platform Truth Social.
TMT is a favorite among so-called “meme stock” traders — those who pile into stocks that have become popular on social media forums like Reddit, even as they are shunned by mainstream Wall Street investors. It also presents an opportunity for Trump supporters to bet on his political revival.
The company’s more than 600,000 shareholders are mainly private investors.
The loss-making company’s valuation of £7.2 billion – prior to the judgment against Trump – meant that in 2023 it was trading at a valuation of more than 2,000 times its £3.2 million turnover.
Art Hogan, chief market strategist at asset manager B. Riley Wealth, said: “The volatility is not surprising. The valuation of that stock has always been a bit of a question mark.
“It certainly doesn’t make any money and trades at almost unfathomable levels.”
The shares have been extremely volatile since they hit the stock market in March, peaking at over £60 before falling to £37 yesterday.