Donald Trump’s social media venture, Trump Media & Technology Group, has experienced a dramatic reversal of fortune in the stock market. The company’s shares, which had soared earlier this year, have now plummeted below $17, erasing all gains since January.

The Guardian reports that while Trump’s majority stake is still valued at approximately $2 billion, it’s a far cry from its peak of $4.9 billion in March. Trump is currently bound by a lock-up agreement that prevents him from selling his shares until late September, adding another layer of complexity to the company’s financial situation.

Truth Social Struggles to Gain Traction Amid Losses

TMTG, the parent company of Truth Social, has struggled to demonstrate substantial growth. In 2023, it reported meager sales of $4.13 million and a loss of $58.2 million. The platform’s user base also lags significantly behind competitors, with an estimated 7.7 million visits in March compared to X’s (formerly Twitter) 6.1 billion.

The company’s meteoric rise was largely attributed to its status as a “meme stock,” joining the ranks of GameStop and AMC Entertainment in defying traditional market logic. As one analyst noted, “The volume of trading in Digital World – how many of its shares changed hands – increased exponentially.”

Despite the downturn, TMTG has maintained that there is no “conceivable sign anywhere” that Trump plans to sell his shares, even as he faces potential financial penalties from recent civil trials.

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The former president, who had previously shunned other social media platforms, recently returned to X for an interview with owner Elon Musk, signaling a potential shift in his online strategy.

As the dust settles on TMTG’s wild market ride, investors and observers alike are left to ponder the future of Trump’s digital media empire in an increasingly competitive landscape.

Read more at The Guardian