Taking a hit: Donald Trump owns a 65 per cent stake in the company
Donald Trump yesterday saw more than £400million wiped off his fortune as shares in his social media company fell in the wake of his criminal conviction.
New York-listed Trump Media & Technology (TMT) dropped by as much as 9 per cent during 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 per cent stake in the company, which controls his social media platform, Truth Social.
TMT is a favourite among so-called ‘meme stock’ traders – those who pile into stocks made popular on social media forums such as Reddit even if they are shunned by mainstream Wall Street investors. It also offers a chance for Trump supporters to bet on his political resurgence.
The company’s more than 600,000 shareholders are mainly retail investors.
The loss-making company’s valuation at £7.2billion – prior to the verdict against Trump – meant it was trading at a valuation of more than 2,000 times its £3.2million revenue in 2023.
Art Hogan, chief market strategist at wealth 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 isn’t making any money and is trading almost at an unfathomable level.’
The shares have been hugely volatile since it joined the stock market in March, peaking at more £60 before falling to as low as £37 yesterday.
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