Trump Loses Hundreds of Millions from Fortune Following Conviction.
Donald Trump’s paper fortune dropped by hundreds of millions of dollars on Friday as shares in his media firm came under pressure following his conviction in his New York hush-money trial.
Trump Media & Technology Group’s stock finished the day down 5.3% on Wall Street, reducing the value of the former president’s vast stake in the business.
By the close of markets, Trump’s stake stood at about $5.6 billion, down from nearly $6 billion the previous day.
An extraordinary market debut in March by Trump Media, the owner of Truth Social, had significantly increased Trump’s paper fortune, propelling him into the ranks of the world’s 500 wealthiest people, even as he faced hefty legal costs.
However, shares in Trump Media are prone to volatile fluctuations, and Trump is unable to start offloading his stake until September due to a lock-up agreement.
When New York’s Nasdaq stock exchange closed on Thursday, about an hour before Trump was found guilty of 34 counts of falsifying business records in a criminal hush-money scheme, his stake in Trump Media was worth more than $5.9 billion. At one point on Friday, as the company’s stock fell, his stake was worth less than $5.5 billion. His fortune recovered some ground near the end of the day.
Trading in Trump Media has been prone to fluctuation since its listing. While the stock stumbled on Friday, it had risen over the course of the week. The company’s financial returns have yet to match its success on the market. Net losses at Trump Media widened from $210 million to $328 million in the first three months of this year, with revenue dropping 31% to $770,500 over the same period.
The company has become a so-called meme stock, boosted by chatter and enthusiasm on social media, including on Truth Social, urging retail investors to buy into it. Some Trump supporters called for others to buy shares the day after his conviction.
The ex-president will need Trump Media to continue trading at its recent high levels if he is to raise billions of dollars by selling his majority stake in the firm.
