Former President Donald Trump\u2019s social media company is in a deep slump that keeps getting worse, wiping out a huge chunk of his net worth.<\/p>\n\n\n\n
Shares of Trump Media & Technology Group (DJT<\/u><\/a>) dropped last week to their lowest level since the merger that brought the owner of Truth Social public this spring.<\/p>\n\n\n\n Despite a 7% rebound on Monday, Trump Media has lost nearlythree-quarters (72%) of its value since peaking at $66.22 on March 27.<\/p>\n\n\n\n The selloff has erased significant amounts of wealth for investors \u2014 including Trump.<\/p>\n\n\n\n Trump\u2019s dominant stake of 114.75 million shares<\/u><\/a> was valued at $6.2 billion on May 9. It\u2019s now down to about $2.1 billion, a sharp drop that has knocked Trump off the Bloomberg Billionaires Index\u2002<\/u><\/a>of the world\u2019s 500 richest people.<\/p>\n\n\n\n The wipeout reinforces concerns raised by experts who have repeatedly warned that Trump Media\u2019s multi-billion-dollar price tag defies logic.<\/u><\/a> The company is losing money<\/u><\/a>, generating very little revenue and Truth Social remains a relatively tiny player in social media.<\/p>\n\n\n\n \u201cIf this wasn\u2019t Trump, this thing would be trading at $1,\u201d Matthew Tuttle, CEO of Tuttle Capital Management, told CNN in a phone interview.<\/p>\n\n\n\n In April, billionaire Barry Diller told CNBC<\/u><\/a> that people who buy Trump Media stock are \u201cdopes.\u201d In June, LinkedIn co-founder Reid Hoffman told CNN<\/u><\/a> that Trump Media is valued \u201cabsurdly out of the realm of normal.\u201d Both Diller and Hoffman are Democratic megadonors.<\/p>\n\n\n\n Beyond the Trump Media\u2019s weak fundamentals, analysts have said there are likely other factors behind the company\u2019s shrinking share price.<\/p>\n\n\n\n Tuttle argues the fact that Vice President Kamala Harris is neck-and-neck with Trump in some polls is a major catalyst.<\/p>\n\n\n\n Indeed, Trump Media has lost about half of its market value since President Joe Biden dropped out and endorsed Harris<\/u><\/a> on July 21.<\/p>\n\n\n\n \u201cThis stock is entirely a Trump-gets-elected play,\u201d Tuttle said. \u201cIf Trump wins, this could be a viable company. But if he loses, I don\u2019t know how this is a going concern.\u201d<\/p>\n\n\n\n Trump Media did not respond to CNN\u2019s request for comment.<\/p>\n\n\n\n Of course, Trump Media is still sitting on more than $300 million in cash and equivalents \u2014 financial firepower it could use to make acquisitions and fund its operations.<\/p>\n\n\n\n And although Trump Media brought in just $837,000 in revenue last quarter, it is building a streaming business<\/u><\/a> that caters to conservatives. In August, Trump Media launched Truth+, a TV streaming platform on iOS, Android and the Web versions of Truth Social.<\/p>\n\n\n\n