Trump tumbles off Billionaire Index as media shares plunge
Donald Trump has fallen off the list of the 500 richest people globally, specifically the Bloomberg Billionaires Index. This has occurred due to the plummeting shares of Trump Media & Technology Group. The former U.S. president has lost billions of dollars. According to analysts, Kamala Harris plays a role in this.
At the end of March, the stock price of Trump Media & Technology Group was £54. Since then, the value of Trump's company has decreased by almost three-quarters (72%). Even the 7% increase in the stock price recorded on Monday wasn’t enough to make a difference. The former U.S. president lost billions in this venture, writes next.gazeta.pl.
Formally speaking, Donald Trump has not lost money. This relates to the valuation of the shares held by the former U.S. president. As long as he does not sell them, it's hard to discuss profit or loss. However, the Bloomberg Billionaires Index is compiled based on asset valuation.
According to reports, the 114.75 million shares in Donald Trump’s hands were valued at £5 billion in May. Currently, their value has fallen to £1.7 billion. This was not enough to remain in the Bloomberg Billionaires Index, the list of the 500 richest people in the world.
500 richest people in the world. Who is number one?
According to Bloomberg, the number one on the list of the 500 richest people in the world is Elon Musk, with a fortune estimated at £200 billion. The second on the list, Jeff Bezos is worth £164 billion. Bernard Arnault closes the podium with £150 billion. The Bloomberg Billionaires Index is updated daily.
CNN emphasizes that "the wipeout reinforces concerns raised by experts who have repeatedly warned that Trump Media’s multi-billion-dollar price tag defies logic." This company controls the niche social platform Truth Social, loses money, and generates very little revenue. "If this wasn’t Trump, this thing would be trading at $1," assessed Matthew Tuttle, CEO of Tuttle Capital Management, in an interview with CNBC.
Weak fundamentals of Trump's business. "Geared towards his victory"
Analysts believe that Trump's company's plummeting stock prices are not only a result of weak fundamentals. Tuttle believes that "an important impulse" is the polls, in which Donald Trump and Kamala Harris are almost neck-and-neck. Trump Media lost about half of its market value since President Joe Biden withdrew from running and endorsed Kamala Harris on 21 July.
"This stock is entirely a Trump-gets-elected play. If Trump wins, this could be a viable company. But if he loses, I don’t know how this is a going concern," Tuttle assessed.
Trump Media still has over £250 million in cash and equivalents, which it can use to finance its operations and potential market acquisitions.
