Trump’s Truth Social Stock PLUMMETS AGAIN and Is ‘On Its Way to Go Lower,’ Says CNBC Contributor
Shares of Donald Trump’s media company took a massive hit on Friday as the stock price shed another 12%.
After merging last week with Truth Social – the former president’s social media platform – Trump Media & Technology Group stock has plummeted. Since trading began under the ticker symbol “DJT,” a share of Trump Media has dropped from $79.38 to Friday’s closing price of $40.59.
One glaring issue is Truth Social’s anemic revenue, which was a mere $4.1 million last year. The company lost $58 million over the same period.
During Friday’s Last Call on CNBC, host Brian Sullivan discussed the state of DJT with CNBC contributor Herb Greenberg.
“Trump Media – the social media stock – plummeting another 12% today,” Sullivan noted. “Over the last week, it is down more than 34%. Remember, the stock just debuted via [a special purpose acquisition company] merger last Tuesday.”
Before welcoming his guest, Sullivan aired a clip of Greenberg weighing in on the stock last week.
“This is the most overhyped meme stock since meme stock mania,” Greenberg said at the time. “In any other universe, in any other world with any other sort of name or person associated with it, this would be a penny stock.”
Sullivan welcomed Greenberg back.
“Herb, don’t you love when we bring you want because you were right?” Sullivan said. “If you were wrong and we brought you on, you’d probably be mad, but we just gave you a shoutout.”
“It’s always nice,” he replied. “It’s not a penny stock yet, and so, but it looks like it’s on its way to go lower. But who knows? Between here and there, it can go much higher.”
“Good point, because we don’t know who’s buying this thing,” Sullivan said. “The former president, very polarizing guy. Some people hate him, some people love him. So, this is kind of a stock that can swing with a lot of different wins I would imagine.”
“It could,” Greenberg replied. “But as everybody has said, from me on to everyone or anybody, based on fundamentals this stock doesn’t deserve to be anything but ultimately the penny stock that many of us think it ultimately will be. Some people say it’s a stock that’s gonna either go to zero or will end up being state TV.”
Trump’s stake in the company was valued at $4.9 billion last week, but has since tumbled to $3.2 billion. The cash-strapped former president is prohibited from selling his shares for six months.
Watch above via CNBC.
