Trump Media’s Stock Collapse: A Financial Disaster Unfolds
The stock of former President Donald Trump’s tech venture, Trump Media & Technology Group (TMTG), is in free fall. Shares of the company behind Truth Social have plunged over 70% from their peak, erasing billions in market value and sparking fears of a total collapse.
From SPAC Hype to Spectacular Crash
TMTG went public in 2022 via a SPAC merger with Digital World Acquisition Corp. (DWAC), briefly reaching a $8 billion valuation as Trump supporters and meme-stock traders piled in. But the excitement faded fast.
By mid-2024, the stock had cratered, with $58 million in revenue against $100 million in expenses—raising serious doubts about the company’s survival.
Why Is Trump Media Crashing? 4 Key Reasons
- Shrinking User Base – Truth Social promised to rival Twitter (X) but stagnated at under 5 million monthly users, far behind competitors.
- Bleeding Cash – With weak ad revenue and high costs, TMTG is burning through funds rapidly.
- Trump’s Legal Battles – His $454M fraud penalty and other cases have rattled investor confidence.
- Short Sellers Attack – Hedge funds are betting against TMTG, pushing the stock toward potential delisting.
Meme-Stock Magic Fades
Like GameStop and AMC, TMTG rode retail investor hype—but unlike those companies, Truth Social lacked a sustainable business model. Its fate now hinges on Trump’s political fortunes, not profits.
What’s Next for Trump Media?
- Extreme Volatility: Political headlines may trigger wild stock swings.
- Bankruptcy Risk: Without a turnaround, TMTG could run out of cash in 12 months.
- Desperate Measures: A fire sale or merger is possible—but who would buy it?
The Verdict: A Cautionary Tale
TMTG’s collapse highlights the risks of mixing politics, speculation, and poor fundamentals. As one analyst noted:
“This wasn’t an investment. It was a political donation disguised as a stock.”
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