Former President Donald Trump’s net worth has bounced back above $4 billion after a surprise recovery in the shares of his company, Truth Social. This increase comes after a significant slump in Trump’s net worth following the company’s public debut. Trump’s fortune saw a boost on April 18 as Trump Media shares climbed more than 25% to $33, resulting in a net worth of $4.5 billion. The rally in the shares seemed to be driven by a squeeze on short sellers, who were trying to prevent their shares from being used in short trades.
On April 17, Trump’s wealth grew by nearly $300 million to $3.9 billion as shares of Trump Media experienced their best single-day gain since March 27. However, Trump’s $2 billion stake in the company is still a small fraction of what it was just three weeks ago. The previous day, April 16, saw a dip in Trump’s fortune by more than $280 million to $3.7 billion as Trump Media shares fell by 14%, resulting in a nearly 65% loss in April. Despite the fluctuations, Trump’s net worth has been on the rise again.
On April 8, Trump Media’s market value dropped below $5 billion, a significant decrease from its peak of over $10 billion just two weeks prior. Trump owns a majority stake in the company, and the decline in its value has had a direct impact on his overall net worth. The company’s first day of trading on March 26 saw a substantial increase in Trump’s net worth, with his holdings in Trump Media reaching a peak of about $6.25 billion. However, the value of his stake has since fluctuated significantly.
Trump launched Truth Social in 2022 during his suspension from mainstream social media platforms for his controversial posts leading up to the Jan. 6, 2021 storming of the U.S. Capitol. The merger of Trump Media with the SPAC firm Digital World Acquisition Corp. provided Trump with a significant financial gain on paper, which has helped offset his mounting legal fees and expenses. Despite the recent recovery in his net worth, Trump is unable to cash in on his stake in Trump Media due to federal regulations.
Looking ahead, Trump’s ability to sell his shares in Trump Media may be influenced by the company’s decision to publicly list more shares. However, the value of Trump’s social media holdings could continue to fluctuate, as the company is still considered to be overvalued based on typical metrics. With a market cap of $4.1 billion and minimal revenue of $4.1 million, Trump Media’s price-to-sales ratio is significantly higher than that of the average S&P 500 company. Investors will be closely watching the performance of Trump’s company and his net worth as he navigates the ups and downs of the business world.
