Trump’s “Truth Social” Stock Is Officially in Free Fall

Free Fallin’

Former president Donald Trump’s “Truth Social” meme stock is officially in free fall, sinking 15 percent after Thursday’s close and accelerating a weekslong decline.

Shares have slid more than 40 percent since the start of the month, indicating a major sell-off is far from over. On Friday alone, shares have plummeted more than a whopping six percent — and the day of trading is far from over.

In a single month, Truth Social owner Trump Media Technology Group (TMTG) has wiped out almost $3 billion in valuation.

There are plenty of reasons behind the meme stock’s massive volatility since it merged with a blank check company in March. For one, TMTG is astronomically overvalued, especially given Truth Social’s pitiful user base. The social media company has bled hundreds of millions of dollars, dwarfing the company’s meager revenue.

And with shares plummeting, executives are looking for a way to cash out — so investors are becoming wary, accelerating a decline that’s been going on for weeks now.

Get Out

Analysts suggest a big reason behind this month’s decline is the Securities and Exchange Commission approving the resale of additional shares, with TMTG hoping to raise roughly $247 million in proceeds.

The approval, which was announced on Tuesday, sent shares of TMTG plummeting by more than 17 percent.

Even before that, the decline kicked off with Trump being found guilty on all 34 felony counts in his hush money trial last month.

But whether shares will hit a new rock bottom, beating out its record all-time low of just $22.84 in mid-April, remains to be seen. Shares are hovering at just below $25 at press time.

While he’s not the number one in charge on paper, Trump holds a massive 65 percent stake in the company, meaning his payout is shrinking before his eyes. The former president isn’t technically allowed to sell his shares until late September — so it’s anyone’s guess how much his meme stock will net him in the end.

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