Trump's social media fortune shrinks by $900 million after Harris's entry

The value of Trump's stake in Truth Social has dropped by $900 million since Vice President Kamala Harris entered the presidential race on July 21

Former US President Donald Trump's once-thriving social media empire is witnessing a sharp decline in fortunes. The former President's stake in Truth Social, the platform hailed as a conservative alternative to mainstream social media, has seen a staggering $900 million drop in value since Vice President Kamala Harris entered the race for the White House on July 21, reported CNN.

Trump Media & Technology Group, the corporate owner of Truth Social, has seen its share price fall by approximately 23 per cent in the wake of Harris’s announcement, with an additional significant drop occurring last Thursday during a broader market selloff. As of July 19, just before President Joe Biden withdrew from the race and endorsed Harris, the value of Trump's stake in the company stood at over $4 billion. However, it has since plunged to around $3.1 billion.

This financial decline is unfolding against the backdrop of a closely contested race between Trump and Harris, as indicated by national and battleground polls. The stock has essentially become a barometer for Wall Street's speculation on Trump’s potential return to the Oval Office, with Truth Social anticipated to play a pivotal role in presidential communications should Trump secure another term.

In a brief surge, Trump Media’s share price spiked in June following President Biden's poorly received debate performance and again last month after Trump survived an assassination attempt in Pennsylvania. Despite these temporary gains, Truth Social continues to struggle in gaining a foothold in the competitive social media landscape. According to Comscore data analysed by TheRighting, the platform's unique visitors plummeted by 38 per cent year-on-year in June, marking the third consecutive month of decline.

Since going public in late March, Trump Media’s share price has been marked by extreme volatility, with experts labelling it a "meme stock," driven more by hype and speculation than solid business fundamentals. Trump, who remains the dominant figure within the company, holds 114.75 million shares, serves as its chairman, and is the most popular user on Truth Social. Bloomberg estimates his net worth at $5.9 billion.

Even with the recent downturn, Trump Media is still valued at $5.1 billion. However, some analysts caution that the company is severely overvalued, given its minimal revenue and limited presence in the social media market. To put it into perspective, Trump Media's market value is more than double that of JetBlue, a company that generated 2,300 times more revenue last year than Trump Media's modest $4.1 million.