Donald Trump is a lot poorer than he was yesterday — on paper at least.
The former US president and presumed Republican nominee recently joined the ranks of the 500 richest people on the planet. His net worth jumped by $A5 billion on Thursday as his social media company Truth Media & Technology Group went public.
Mr Trump owns a whopping 78,750,000 shares and they reached a high of $US79.38 apiece, giving the company an astronomical market capitalisation of $US10 billion ($A15 billion).
However, a regulatory filing to the US Securities and Exchange Commission by the company on Monday revealed that Trump Media lost $US58.2 million ($A90 million) in 2023 after making $US50 million in profit the year before.
The company generated just $US4.1 million in revenue, up from the $US1.4 million it made in 2022.
The filing stated: “TMTG’s independent registered public accounting firm has indicated that TMTG’s financial condition raises substantial doubt as to its ability to continue as a going concern.”
Investors reacted negatively to the news, with the company’s stock price dropping 21.5 per cent. The stock price is still up 200 per cent for the year.
The plunge hurt Mr Trump’s overall net worth to the tune of $1.5 billion. It is currently estimated by Forbes to be $8.7 billion.
Experts have warned that the company is massively overvalued, likening it to a “meme stock”.
