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Former Us President Trump Loses $3.3 Billion in Stock Crash; Here's What Exactly Happened
Former President Donald Trump is facing a major financial setback as his media company, Trump Media and Technology Group, sees its stock price plummet.
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Donald Trump's media venture, Trump Media & Technology Group, suffers setback as its stock plummets
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Trump's platform, Truth Social, sees a sharp drop in value since its high-profile launch in March
Donald Trump, the former President of the United States, is facing a significant financial setback as his media company, Trump Media and Technology Group, sees its stock plummet, as per Business Insider. Truth Social, the company's flagship platform, has experienced a rapid decline in value since its much-anticipated public debut in late March.
Dramatic decline in market value
Trump Media's market capitalization peaked at $8.97 billion, with Trump owning a sizable 57% stake in the company. This amounted to an estimated $5.11 billion in shares for the former President. However, the euphoria surrounding the company quickly dissipated as its stock began to plummet.
By Tuesday, Trump Media's market capitalization had fallen to around $3.12 billion, representing a staggering 65% drop from its peak. This sharp decline reduced Trump's personal wealth by more than $3.33 billion in just three weeks.
Troubling signs for investors
Recent developments within Trump Media have exacerbated the stock's decline. According to a filing, insiders, including Trump, planned to sell their shares earlier than expected. This revelation sent the stock further down, as investors became concerned about the company's future prospects.
Adding to the uncertainty was Trump Media's announcement of plans to launch a streaming platform, which did not inspire investor confidence. Despite the initial excitement surrounding Truth Social, doubts about the company's viability arose, especially after it reported significant losses of $58 million compared to meager revenues of $4.1 million the previous year. 
Implications for Trump's future
While the decline in Trump Media's stock value is a significant financial setback for the former president, it may have broader implications for his political aspirations. With mounting legal bills from ongoing criminal and civil cases, Trump may have relied on his media venture to supplement his income.
As Trump prepares for a possible run in the 2024 presidential election, any financial setbacks could jeopardize his ability to mount a competitive campaign. Furthermore, his involvement in legal proceedings, including a high-profile trial over hush-money payments to adult film actress Stormy Daniels, could detract from his political ambitions.
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