How Trump’s Net Worth Dropped By $1 Billion In A Single Day

Donald Trump

Recall how Wile E. Coyote would constantly run over the brink of a cliff in the Road Runner cartoon, only to tumble when he looked down and realized the earth was no longer beneath his feet. For investors in Trump Media & Technology Group, the embattled owner of Truth Social, that is essentially what transpired on Monday.

Following the firm’s disclosure that it almost went bankrupt last year and would not have survived without the infusion of cash it obtained through last week’s merger with a shell company that allowed it to trade openly, Trump Media’s shares plunged 21%. 

Trump Media, Also Called TMTG, Made Only $4.1M As Income Last Year

Despite Monday’s drop, the stock has gained around 200% over the last six months, giving it an absurdly high valuation of $6.6 billion. Additionally, it significantly increased the former president’s wealth—even though he lost almost $1 billion in Monday’s selloff alone—as he still holds a 54% share in the business, according to my colleague Matt Egan.

Let’s face it, Wall Street frequently has no problem funding financially struggling businesses as long as there is a healthy flow of capital and a clear route to profitability. That isn’t the situation at hand. Just $4.1 million was made by Trump Media, also known as TMTG, in income last year. In other words, the stock is currently selling at almost 1,500 times its yearly sales. That degree of separation is unmatched even by the frothiest of AI stocks.