Shares in Donald Trump’s Truth Social platform have plunged more than 20% – wiping out gains made following its stock market debut last week.
The tumble came after Trump Media & Technology Group (TMTG) reported losses of more than $58m (£46m) in 2023.
The company also warned it would struggle to meet its financial liabilities going forward.
Shares in the social media platform finished the day at $58 (£46) when it made its New York debut last week.
However, following the latest disclosure, they fell 21% to almost $49 (£39) by the close on Monday – almost $1 (80p) below its initial offering price.
Mr Trump owns 78.75 million shares in the company, which could provide him with a lifeline during his ongoing legal and financial challenges if he decides to sell his stock.
At its peak last week, his stake would have been more than $6bn (£4.8bn) – but it is now worth around $3.8bn (£3bn). He is not allowed to sell or borrow against any of his shares for six months.
Ross Benes, an analyst at Insider Intelligence, said: “Truth Social was overvalued and that reality is dragging down the stock.
“Because the service does not have a clear path to profitability and its revenues are meagre, its high debut was unsustainable.”
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Pic: Reuters
The former president launched the social media platform in February 2022 after he was blocked from Twitter, now X, Facebook and YouTube for allegedly inciting violence online.
It came as the Republican presidential hopeful posted a $175m (£140m) bond in his New York civil fraud case on Monday – preventing the state from seizing his assets.
Trump had been given 10 days to make the payment after his lawyers successfully asked for the bond to be reduced from $454m (£362m).
However, Mr Trump will be liable to pay the full amount – plus daily interest – if he loses an appeal in the case.
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Trump lashes out at news conference
New York’s attorney general, Letitia James, had been prepared to start seizing the 77-year-old’s real estate unless the bond was posted.
In February, he was found guilty of scheming for years to deceive banks and insurers by inflating his wealth on financial statements used to secure loans and make deals.
Mr Trump, who has secured the Republican nomination for this year’s general election, has frequently claimed to be worth billions of dollars and last year said he had $400m (£319m) in cash, in addition to properties and other investments.
He has repeatedly denied wrongdoing, and argued the statements actually underestimated his fortune.
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Trump: Judge is ‘disgrace to this country’
Trump ordered to stop attacking judge’s family
There have also been developments in a separate trial that Mr Trump is facing, which relates to a hush money payment made to the porn star Stormy Daniels.
On Monday, he was ordered to stop verbal attacks on the family members of the judge in this upcoming case.
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Courtroom sketch of Mr Trump during hush money payment trial. Pic: Reuters
It comes after Judge Juan Merchan’s daughter was described as a “rabid Trump hater” in a social media post.
Prosecutor Matthew Colangelo had warned: “Family members of trial participants must be strictly off-limits.
“Defendant’s insistence to the contrary bespeaks a dangerous sense of entitlement to instigate fear and even physical harm to the loved ones of those he sees in the courtroom.”
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It is an extension to an order already in place that bars Mr Trump from publicly commenting about witnesses and court staff.
If Mr Trump violates the order he could face jail time, but it does not stop him from criticising Mr Merchan or Manhattan District Attorney Alvin Bragg, whose office brought the charges last year.
The trial is due to start on 15 April in Manhattan. Mr Trump has pleaded not guilty to 34 counts of falsifying business records and denies an alleged sexual encounter with Ms Daniels, whose real name is Stephanie Clifford.
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