Trump media's sharp decline topples him from billionaire index
Donald Trump has fallen off the list of the 500 richest people in the world, namely the Bloomberg Billionaires Index. This decline is due to plummeting shares of Trump Media & Technology Group. The former U.S. president has lost billions of dollars. According to analysts, Kamala Harris has played a role in this.
At the end of March, the stock price of Trump Media & Technology Group was $66.22. Since then, however, the value of Trump's company has decreased by almost three quarters (72%). And the 7% increase in stock price recorded on Monday didn't help. The former U.S. president lost billions in this venture.
Formally speaking, Donald Trump has not realized any financial losses. This concerns the valuation of the shares held by the former U.S. president. As long as he doesn't sell them, it's hard to talk about profit or loss. However, the Bloomberg Billionaires Index is compiled precisely on the basis of asset valuation.
As we read, back in May, the 114.75 million shares in Donald Trump's hands were valued at $6.2 billion. Currently, their value has fallen to $2.1 billion. This was not enough to remain in the Bloomberg Billionaires Index, the list of the 500 richest people in the world.
500 richest people in the world. Who is number one?
According to Bloomberg, Elon Musk is number one on the list of the 500 richest people in the world, with a fortune estimated at $241 billion. Jeff Bezos is second on the list, worth $198 billion. Bernard Arnault closes the podium with $181 billion. The Bloomberg Billionaires Index is updated daily.
CNN emphasizes that "the wipeout reinforces concerns raised by experts who have repeatedly warned that Trump Media’s multi-billion-dollar price tag defies logic." This company controls the niche social platform Truth Social, loses money, and generates very little revenue. "If this wasn’t Trump, this thing would be trading at $1," assessed Matthew Tuttle, CEO of Tuttle Capital Management, in an interview with CNBC.
Weak fundamentals of Trump's business. "Geared towards his victory"
Analysts believe that Trump's company's plummeting stock prices are not only a result of weak fundamentals. Tuttle believes that "an important impulse" is the polls, in which Donald Trump and Kamala Harris are almost neck-and-neck. We hear that Trump Media lost about half its market value since President Joe Biden withdrew from running and endorsed Kamala Harris on July 21.
"This stock is entirely a Trump-gets-elected play. If Trump wins, this could be a viable company. But if he loses, I don’t know how this is a going concern," assessed Tuttle.
Trump Media still has over $300 million in cash and equivalents, which it can use to finance its operations and potential market acquisitions.
