Donald Trump's "Truth Social" Meme Stock Just Had Its Worst Day Ever

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Truth Social Hurts

Former president Donald Trump’s net worth slid by an astonishing $1.3 billion on Wednesday after his meme stock posted its worst day ever.

Shares of Truth Social owner Trump Media & Technology Group fell a record 22.3 percent on Wednesday—the biggest one-day loss since the company went public in March—and continued dropping more than 10 percent on Thursday, CNN reported.

Market Rollercoaster

The decline followed a sharp rally over several days, an unusual move given that the company continues to lose millions and its main product has lost momentum since Trump’s return to X (formerly Twitter).

Even after this week’s steep drop, Trump’s majority stake remains valued at a striking $4.6 billion, a figure driven more by investor enthusiasm than by the fundamentals of a profitable business.

Litmus Test

Analysts are still unclear on the exact trigger for the latest plunge. Some suggest TMTG’s share price now serves as a proxy for expectations around next week’s presidential election, while others point to fading momentum after a month-long surge that quadrupled the stock from its recent low.

As of Tuesday, before the record slide, Trump Media was valued at an eye-watering $10.3 billion—potentially more than the latest estimates for X—despite having roughly one-hundredth the monthly active users.

The company remains entangled in multiple lawsuits and is led by a CEO who has rarely appeared at its Florida headquarters, leaving staff “in the dark about the company’s vision, strategy, and future,” according to a whistleblower letter obtained by the New York Times.

In short, Trump’s social-media venture has experienced extreme volatility, generating millions in executive payouts while offering little to support its lofty valuation.

“Fundamentally the valuation is a head-scratcher, but we have seen other meme-stock narratives like AMC and GameStop follow similar paths in recent years,” Wedbush Securities senior equity analyst Dan Ives told CNN.

“Truth Social is a fraction of X and other social-media platforms in terms of users, but with an election a week away this stock has become a litmus test for some investors on the White House race,” he added.

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