Trump's net worth falls by up to $2.4 billion due to DJT stock plunge

Trump Media & Technology Group had a wild stock market ride this month. After quadrupling in price a few days earlier, the stock plunged as much as 39% on Thursday from its intraday high on Tuesday. The two-day decline shaved more than $2.4 billion off former President Donald Trump's stake in the company, which operates under the ticker symbol DJT, the same as his initials.

Trump Media, which owns the app Truth Social, lost $5.35, or 13.4%, to $34.68 in early afternoon trading Thursday, after hitting an intraday low of $33.41 . That came after a 22% drop on Wednesday, which followed more than five weeks of market gains and sent shares to an intraday high of $54.68 on Tuesday.

Because of its volatility, DJT has earned comparisons to meme stocks, or companies that trade on social media buzz rather than revenue growth or profitability, investors' preferred measures. Despite Truth Social declining revenues and large lossesTrump Media shares rose sharply through most of October as polls in the presidential race tightened and betting markets like Polymarket predicted chances of a Trump victory.

It's not exactly clear what sparked the two-day selloff, but DJT shares have attracted a number of speculators and short sellers, with the latter betting that the stock would fall. According to research group S3 Partners, some of DJT stock's rise in October may have come from short sellers being forced to cover their bets, forcing them to buy shares and creating a so-called short squeeze that sends shares higher can drive.

“Trump and Media Group (DJT) shares, which are closely linked to Trump’s election prospects, are at high risk due to limited float and increased short interest,” S3 wrote on Tuesday. “Trump’s 57% stake and current short losses reinforce squeeze potential.”

Trump's stake in DJT

Trump owns around 115 million shares of Trump Media, making him the largest investor in the young social media company. At its most recent intraday peak of $54.68 on Tuesday, its stake was worth nearly $6.3 billion.

But the two-day selloff has shrunk the value of that stake to about $3.8 billion based on Thursday's intraday low.

Of course, these losses represent paper assets, and Trump did vowed not to sell his shares after a lock-up period expired last month that now allows him to liquidate his stake. Since Trump owns nearly 60% of the company's stock, selling even a portion of his shares could flood the market with available shares and potentially drive down the price.

Many of DJT's other shareholders are retail investors who bought shares to show their support for the former president. On Thursday, as the stock plunged for a second day, some of its shareholders vowed revenge in the coming months. Some blamed short sellers, others pointed to the US Securities and Exchange Commission (SEC).

“I was happy to give @realDonaldTrump my investment money and take all the financial arrows with me,” wrote Chad Nedohin, a minister and shareholder who runs a DJT group on Truth Social. “The more they try to harm DJT, the worse it will be for them in 2025.”

Nedohin added #TrumpTheSEC at the end of his post.