Trump Media fell due to volatile trading that saw the social media company's market value fall below $5 billion

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  • Trump Media shares fell as much as 10% on Wednesday.

  • This decline brought the company's market value below $5 billion for the first time since going public.

  • Donald Trump dropped out of the world's 500 richest people on Wednesday, with Forbes now placing him at 699th place.

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

Shares of Trump Media and Technology Group were trading at $34.30 a share around 3:20pm in New York, down 8.5%.

The stock is down more than 40% month to date.

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

Following Trump Media's debut on the Nasdaq under the name “DJT” in late March, its shares rose as much as 67%, pushing Donald Trump's fortune to nearly $7 billion, with the former president owning a 58% stake. % In the company.

However, bouts of volatile stock trading have knocked Trump out of the list of the world's 500 richest people, with his personal holding falling below $5.8 billion. Forbes Now Trump is ranked 699th globallyWith a total wealth estimated at $4.5 billion.

Investors became concerned about the company's future last week, after Trump Media Inc It revealed a net loss of $58 million for 2023 Along with just $4 million in revenue.

As the platform strives to accommodate more users, advertisers and partners, Trump Media noted in a Securities and Exchange Commission filing that it expects operating losses and negative cash flows to persist in the near term, along with a “material weakness” in financial reporting controls. Media teacher Barry Diller criticized the Trump media As a “scam” last week.

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Then there's the fact that Trump may one day decide to sell his significant stake, either after the lockout period ends or if he is granted a waiver by the board, which consists of family and associates. Selling Trump has the potential to do so Tank stock price further.

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