Former US President Donald Trump’s net worth has decreased by $900 million following Vice President Kamala Harris’s entry into the presidential race on July 21. This date also marked President Joe Biden’s withdrawal and endorsement of Harris.
The decline is attributed to the reduced value of Trump’s stake in Trump Media and Technology Group (TMTG), the parent company of Truth Social.
According to CNN, Trump holds over 114 million shares in TMTG, and the value of these shares has dropped by 23 per cent since Harris’s entry, from $4 billion on July 19 to approximately $3.1 billion currently. This decline coincides with opinion polls showing a tight race between Trump and Harris in national and key battleground states.
Market Reaction & Investor Sentiment
Wall Street investors have speculated on Trump’s potential return to the presidency, with Truth Social serving as a key communication tool if he wins the election on November 5.
In June, Trump Media’s shares experienced a brief surge following President Biden’s weak performance in a presidential debate. The stock rose again last month after Trump narrowly survived an assassination attempt at a campaign rally in Pennsylvania.
However, some analysts warn that Trump Media is overvalued due to its minimal revenue generation and Truth Social’s relatively minor presence in the social media landscape.
Challenges for Truth Social
Truth Social has struggled to establish itself in the competitive social media market. Data from Comscore, analysed by TheRighting, indicates that Truth Social’s unique visitor count fell by 38 per cent year-over-year in June, marking the third consecutive month of declines.
TMTG’s shares have shown volatility since going public in late March, with experts labelling Trump Media as a meme stock that trades on hype and momentum rather than fundamentals.
Trump’s Dominance in TMTG
Despite the challenges, Trump remains a dominant figure in TMTG, owning 114.75 million shares and serving as its chairman. He is also the most popular user on Truth Social. Trump’s net worth is estimated at $5.9 billion, according to Bloomberg.
