Some investors in Trump's newly public media company are having a very bad time right now.
According to a new CNN report, "Trump Media is now trading below $31. That’s a far cry from the intraday spike to nearly $80 on March 26, the day it went public on the Nasdaq under the ticker symbol 'DJT.'
"In fact, anyone who bought Trump Media at the closing high of $66.22 on March 27 has now lost more than half of their money."
One consequence of this is that Trump himself, who holds 57 percent of the stock and stood to gain $4 billion in nominal wealth from the Trump Media deal, has now seen much of that wiped out and was recently booted off the Bloomberg billionaire list.
But he isn't alone; plenty of other people hold the stock, and some have held it from day one.
One person who at least at one point held shares is Rep. Marjorie Taylor Greene (R-GA). However, she currently appears unwilling to discuss what happened to those shares.
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"One common way to value stocks is to measure their price-to-sales ratio. Even if Trump Media’s share price crashed to just over $1, it would still have a much steeper price-to-sales ratio than Meta, Pinterest, Snap, Reddit or even Rumble, according to Renaissance Capital’s Matthew Kennedy," noted the report. At one point, Trump Media had a staggering 1,500 price to sale ratio.
Barry Diller, a billionaire who chairs Expedia and the parent company of People Magazine, has already sounded the alarm that the Trump Media stock is a "scam."
But a Trump spokesperson pushed back on all such claims, saying that it is, “Unsurprising to see die-hard Trump haters and leftwing flacks blow a gasket now that Truth Social has become a public company that, still today, refuses to suppress political expression.”
