Former President Donald Trump is on the verge of a financial coup, poised to amass a staggering sum of over $1 billion, all thanks to his social media venture, Truth Social stock.
According to a CNN report, despite the platform’s modest size and Trump Media & Technology Group’s financial losses, Trump stands to gain an additional 36 million shares, valued at about $1.3 billion at current prices. This could significantly raise the Donald Trump net worth to over $4.7 billion, offering a hopeful outlook for his financial future.
Truth Social is described as “America’s Big Tent” social media platform that encourages an open, free, and honest global conversation without discriminating on the basis of political ideology. Trump has been known for years as a very vocal personality on social media and has often found himself in hot water for incredulous statements.
Trump Media’s stock has been a wild ride since its public debut, earning it the moniker of a ‘meme stock on steroids.’ Despite a significant drop from its peak in March, the share price remains above the threshold for additional share issuances to pre-merger shareholders like Trump, highlighting the unpredictable nature of this investment.
The merger agreement’s terms dictate that Trump could receive up to 40 million additional shares if specific price metrics are met. With the 20th trading day approaching and the share price consistently meeting the required level, anticipating whether the conditions for additional shares will indeed be fulfilled adds a layer of intrigue to the situation.
If all unfolds as anticipated, Donald Trump’s Truth Social stake could surge to a commanding 65% of the total outstanding shares, with his ownership potentially reaching a staggering 114.75 million shares—however, the stock’s extreme volatility and legal restrictions on immediate share cashing present formidable hurdles.
Critically, experts caution that Truth Social’s stock appears overvalued compared to industry peers. While the platform’s popularity among specific population segments is undeniable, its valuation defies conventional metrics. Trump Media’s stock’s overvaluation is highlighted by its staggering price-to-sales ratio, which is significantly higher than that of its social media counterparts.