The stock price of Truth Social, the social media platform founded by former U.S. President Donald Trump, is experiencing a significant decline. On Monday, the stock closed at $22.24 on the New York Stock Exchange, marking a 3.5% drop from the previous trading session. This is the lowest price for Truth Social since January 12. Following its merger with Digital World Acquisition Corporation in late March, Truth Social has been trading under the ticker DJT on NASDAQ.
The stock hit an all-time high of $79.38 on March 27 but has since fallen by about 72%. The decline intensified after Trump was injured in a shooting incident and President Joe Biden withdrew from the Democratic nomination. Since July 22, the stock price has halved, dropping 45.19%.
Following Biden’s departure as the Democratic nominee on July 21 and Vice President Kamala Harris’s emergence as the candidate, Trump has faced increasing challenges in the election race. Though within the margin of error, recent polls show Harris leading Trump, suggesting greater voter support for her.
Truth Social has yet to turn a profit. The company reported a loss of over $16 million in the second quarter of this year (April to June), with revenue of only $837,000 for the same period. Despite its financial struggles, Truth Social’s market capitalization remains near $4.5 billion, driven by its association with Trump’s potential reelection.
The company has partially attributed its success to Trump’s popularity, reputation, and influence.
Based on their present price, Trump holds approximately 59% of Truth Social’s shares, which are currently valued at around $2.5 billion.
