Truth Social would be worth just $1 without Trump's name: financial expert

Donald Trump's slumping social media company pulled him off a list of the world's richest people in April — and the collapse is continuing.

Shares of Trump Media & Technology Group (DJT) last week tumbled to their lowest value since a merger that took the company public this spring. The value of the former president's massive stake had already dropped so much that he was knocked off the Bloomberg Billionaires Index of the world’s 500 richest people, reported CNN.

“If this wasn’t Trump, this thing would be trading at $1,” said Matthew Tuttle, CEO of Tuttle Capital Management.

Trump Media has lost 72 percent of its value since peaking at $66.22 on March 27, and the value of Trump's dominant stake of 114.75 million shares has plummeted from a peak of $6.2 billion on May 9 to its current $2.1 billion.

Experts have repeatedly warned that the company's valuation defies logic because it generates little revenue – only $837,000 last quarter – and has a relatively small user base compared to other social networks, although it's currently building out a streaming platform that caters to conservatives.

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“This stock is entirely a Trump-gets-elected play,” Tuttle said. “If Trump wins, this could be a viable company. But if he loses, I don’t know how this is a going concern.”

Trump and other insiders have been prevented from selling their shares until Sept. 20, but experts say it would be difficult for the former president and others to sell their shares without crashing the stock.

“I am a huge believer that you must keep politics and profits separate,” Tuttle said. “If you’re holding onto this for dear life because you’re a Trump fan, that’s just stupid. You invest to make money.”