Trump's net worth falls by $1.9 billion as DJT shares fall

Trump Media & Technology Group experienced crazy stock market growth this month. After quadrupling days earlier, the stock lost 31% of its value during a two-day decline, reducing former President Donald Trump's stake in the company by about $1.9 billion. .

Trump Media, which owns the Truth Social app and trades under DJT, the same as Trump's initials, lost $4.69, or 11.7 percent, to $35.34 on Thursday. This follows a 22% drop on Wednesday, which followed more than five weeks of market gains, propelling shares to an intraday high of $54.68 on Tuesday.

Because of their volatility, DJT has earned comparisons to meme stocks, or companies that trade on social media buzz rather than revenue growth or profitability, investors' preferred criteria. Despite Truth Social's declining revenue and steep losses, shares of Trump Media surged through much of October as polls in the presidential race tightened and betting markets such as Polymarket predicted Trump's chances of victory.

It's unclear what exactly triggered the two-day sell-off, but DJT shares attracted a number of speculators and short sellers, with the latter betting the stock would fall. Part of the rise in DJT stock in October could come from short sellers being forced to cover their bets, forcing them to buy shares and create what's called a short squeeze, which can send stocks higher, according to the S3 Partners research group.

“Stocks of Trump and Media Group (DJT), closely tied to Trump's election chances, face elevated squeeze risk due to limited float and high short interest,” S3 wrote Tuesday . “Trump’s 57% turnout and current losses intensify the squeeze potential.”

Trump's stake in DJT

Trump owns about 115 million shares of Trump Media, making him the largest investor in the young social media company. At its most recent intraday high of $54.68 on Tuesday, its stake was valued at nearly $6.3 billion.

But the two-day sell-off reduced the value of that stake to about $4 billion, based on Thursday's closing price.

To be sure, these losses represent paper wealth, and Trump has pledged not to sell his shares after a lock-up period expired last month, which now allows him to liquidate his stake. Given that Trump owns nearly 60% of the company's stock, selling even part of his stake could flood the market with available shares, which could drive down its price.

Most of DJT's other shareholders are small investors who purchased shares to express support for the former president. On Thursday, as the stock fell for a second day, some of its shareholders vowed revenge in the coming months, with some blaming short sellers and others pointing the finger at the U.S. Securities and Exchange Commission (SEC). -United.

“I was happy to attach my investment dollars to @realDonaldTrump and take all the financial arrows with him,” wrote Chad Nedohin, a minister and shareholder who runs a DJT group on Truth Social. “The more they try to harm DJT, the worse it will be for them in 2025.”

Nedohin added #TrumpTheSEC at the end of his message.

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Aimee Picchi is an associate editor at CBS MoneyWatch, where she covers business and personal finance. She previously worked at Bloomberg News and wrote for national media outlets including USA Today and Consumer Reports.

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