by Donald Trump’s political fortunes are beginning to diverge from his financial fortunes.
Shares in the former president’s social media group fell to new lows on Monday, even as the latest polls suggest he is gaining ground in some key battleground states in the country’s sun belt.
Until recently, the price from its Truth Social parent company was widely seen as a barometer of its chances in November.
A poll was published on Monday by The New York Times and Siena College showed he was holding on to his lead in Georgia, while moving ahead of Harris in Arizona and North Carolina after their controversial debate this month in which Trump went viral for claiming immigrants eat pets.
It also marked the sixth straight day of heavy selling at Trump Media and Technology Group (TMTG), the parent company of Twitter clone Truth Social, after a very brief hiatus when Trump told reporters he had no intention of selling his nearly 115 million shares to sell. .
It closed 10% lower on the session, ending at $12.15, the lowest level since it first announced plans three years ago to go public through a reverse merger with a blank check investment vehicle known as a SPAC.
That means the value of Trump’s 59% stake in the company which until this week was subject to a six-month lock-up period following the SPAC merger, has shrunk to just $1.4 billion from its original value. peak in March of over $9 billion.
Assuming Trump doesn’t sell his stock as he claims, selling pressure won’t necessarily subside.
With its meme stock image and refusal to reveal anything about the underlying numbers driving its business, the stock is shunned by financial analysts.
There isn’t a single estimate on Yahoo Finance for this year’s revenues, let alone the profits or, in the case of TMTG, the losses.
Applying the same 7.5x price-to-sales multiple to next year’s sales that Reddit is currently trading on TMTG stock would give it a market cap of around $25 million.
