The recent decline in shares of Trump Media and Technology Group, the parent company of Truth Social, has significantly impacted Donald Trump’s net worth. As the majority shareholder, the stock’s performance has been indicative of the former president’s prospects during this election cycle. Initially, the stock surged as polls started favoring Trump throughout most of October.
On a notable day, Trump Media’s market capitalization peaked at $10.8 billion, surpassing Elon Musk’s social media platform X, which is valued at approximately $9.4 billion. However, the following day, shares began to plummet, experiencing such extreme volatility that trading was halted multiple times. By the end of the trading session, the stock had dropped 22%, marking the steepest single-day decline since Trump Media’s public debut in March.
Over the next few days, shares continued to fall, with a 12% decrease on Thursday and a 14% drop on Friday, culminating in a 41% plunge over three days. Consequently, the value of Trump’s stake decreased from $5.9 billion to $3.5 billion, reflecting a $2.4 billion reduction in net worth, as reported by CNN.
The turning point for these events may have been at Trump’s rally at Madison Square Garden on October 27. During the event, comedian Tony Hinchcliffe referred to Puerto Rico as “a floating island of garbage in the middle of the ocean,” which resulted in significant backlash. This rally, which included other provocative speakers and comments, was considered such a failure that it may have shifted Kamala Harris’s political trajectory, possibly aiding her bid for the White House, according to Thomas Miller, a data scientist at Northwestern University who developed an election model.
For Trump and the value of his social media company, not securing the presidency could be particularly detrimental. Mattew Tuttle, CEO of Tuttle Capital Management, previously mentioned to Fortune that if Trump were to lose, the company might eventually have no value. Nonetheless, even under this bleak scenario, Trump would remain a billionaire, although with a reduced net worth. Before the decline, his net worth was estimated to be between $7.5 billion and $10 billion according to estimates from the Wall Street Journal.
