Trump loses $1.3 billion in net worth after the worst-ever day for his social media stock

Trump loses $1.3 billion in net worth after the worst-ever day for his social media stockTrump loses $1.3 billion in net worth after the worst-ever day for his social media stockTrump loses $1.3 billion in net worth after the worst-ever day for his social media stock

After a ridiculous spike over the past five weeks that had absolutely nothing to do with the company’s actual business, former President Donald Trump’s social media stock is suffering a sudden setback.

Truth Social owner Trump Media & Technology Group’s share price plunged 22.3% on Wednesday. That marks Trump Media’s worst one-day loss since going public in March, narrowly exceeding a loss of 21.5% on April 1.

At Tuesday’s close above $51, Trump’s dominant stake in the company was valued at about $5.9 billion. By the end of trading on Wednesday, the value of Trump’s shares tumbled to $4.6 billion. That means Trump lost $1.3 billion in net worth in a single day.

It’s not clear exactly what caused the sharp reversal for Trump Media, whose share price has become a proxy for how traders think this election will turn out. Trump Media did not release any major news that would explain the nosedive.

Some traders blamed the steep selling on technical factors and a loss of momentum for what has become a meme stock.

Trump Media’s stock has been extraordinarily volatile all year. The stock does not need official corporate announcements to move dramatically higher or lower.

Until Wednesday, it had been moving in one direction: Straight up.

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