Trump faces $500M in losses as DJT shares fall 9% following guilty verdicts

In a shocking turn of events, former President Donald Trump has been found guilty of 34 felony counts of falsifying records, leading to a significant drop in his net worth. Shares of Trump Media, the parent company of the social media platform Truth Social, fell 5% on Friday, causing a $316 million drop in the value of Trump’s stock. Trump, who owns 65 percent of the company, has seen its shares tumble since becoming a convicted felon, with shares falling about 9 percent in the first hour of after-hours trading after Thursday’s verdict.

Despite the initial drop in the stock price, there was a brief rise of more than 5% in pre-market trading on Friday, which was attributed to a social media push among Trump supporters to show their financial support for him. This stock market volatility reflects the continued uncertainty surrounding Trump Media and its future trajectory. As a result of these fluctuations, Forbes reported that Trump’s net worth fell from $7.8 billion to $7.5 billion as of Friday morning, making him the 357th richest person in the world.

Trading activity around Trump Media shares was described as chaotic, with retail investors trying to understand the implications of the verdict on the stock. According to Yale School of Management professor Raphael Duguay, investors are reacting to the news without the foresight and strategic planning that a hedge fund would typically use in such situations. Trump Media went public in March in a reverse merger with a blank check company, facing legal and regulatory challenges along the way. Despite the low revenue numbers, the company’s market capitalization remains high, indicating a disconnect between financial performance and stock value.

In a rare move, Trump Media disclosed the risk of a “materially disruptive” event to potential shareholders if Trump is convicted. Even though Trump is not a board member, his stake in the company raises concerns about the impact of his legal problems on the company’s future. Trump’s son, Donald Trump Jr., and other allies are involved in running the company, adding another level of complexity to the situation. The current implications of Trump’s conviction on his business empire and the broader financial markets are still uncertain, but recent stock price swings highlight the challenges ahead for Trump Media and its investors.

Forbes has been closely following the developments surrounding Trump Media and its impact on Trump’s financial situation. With ongoing coverage of the verdict and its implications, readers can stay informed of the latest updates and analysis. As the situation continues to unfold, pundits and investors alike will be closely monitoring Trump Media’s stock performance and its connection to Trump’s legal troubles. The future of Trump’s businesses and his overall net worth remain uncertain, making it a critical story to watch in the coming days.