Trump Media fell as volatile trading sent the social media company's market value below $5 billion

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  • Shares of Trump Media fell as much as 10% on Wednesday.

  • The decline pushed the company's market value below $5 billion.

  • Donald Trump moved up from the list of the world's 500 richest people on Wednesday, with Forbes now placing him at 699.

Shares of Donald Trump's social media company fell as much as 10% on Wednesday, dragging the company's market value below $5 billion for the first time since going public.

Shares of Trump Media and Technology Group traded down 8.5% at $34.30 a share at 3:20 p.m. in New York.

The stock is down more than 40% for the month.

Bloomberg reported A fall in options trading for Truth Social's parent companyAbout 70,500 contracts changed hands on Wednesday, about a third of the previous 10-day average.

Following Trump Media's Nasdaq “DJD” debut in late March, its stake rose to 67%, pushing Donald Trump's fortune to nearly $7 billion, as the former president owns 58% of the company.

However, the gripes of volatile trading in stocks have pushed Trump out of the world's 500 richest people as his personal net worth fell below $5.8 billion. Now Forbes Trump is ranked 699 in the worldTotal estimated assets are $4.5 billion.

In the past week, after Trump Media, investors have been confused about the company's future 2023 revealed a net loss of $58 million With earnings of just $4 million.

An SEC filing said Trump Media expects continued operating losses and negative cash flows, along with a “material weakness” in its financial reporting controls as the platform tries to absorb more users, advertisers and partners. media guru Barry Tiller slams Trump media Last week as a “fraud”.

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The reality is that Trump could one day decide to sell his vast holdings after the lockup expires or if he is granted an exemption by a board comprised of family and close associates. Trump has the potential to sell Lower the share price further.

Read the original article Business Insider

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