Trading for social media platform Truth Social (NASDAQ:DJT) has definitely not gone the way of shareholders, as it’s once again down another 10% in Wednesday afternoon’s trading. What prompted the latest round of losses? Reports suggest some inside friction might have something to do with it.
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The latest declines did damage to the Trump brand on several fronts. It was certainly a blow to Trump Media itself, as its total market capitalization is now under the $5 billion mark. Shares are now down half of what they were on March 26, when it started life as a publicly-traded company.
Perhaps worse for former President Trump is the revelation that the latest downturn has further reduced his personal net worth to the point where he is no longer listed on the Bloomberg Billionaires Index, a daily snapshot ranking the 500 richest people on Earth.
Selling Out
While certainly some of this is a matter of profit-taking and some of it is a matter of personal animus toward Donald Trump himself, some reports suggest fundamental issues may be part of the problem. In fact, two of the company’s co-founders—Andy Litinsky and Wes Moss—were looking to sell their shares in the company before the lockup period had expired.
Other reports suggested that Trump himself was looking to do likewise, but information has been thin on the ground in terms of how far that’s gotten. All of this news about selling out, coupled with the latest declines, is likely adding up to deep investor concern as very little is heard about how Truth Social plans to make money.
Is DJT Stock a Good Buy Right Now?
A look at the last five days of trading for DJT stock shows a lot of downside. It’s made some attempt at rally in that time, but it just keeps trending down over that period. In fact, just in the last five days, DJT stock has lost 26.24%.
