After the victory of Donald Trump in the US election, the share price of his social media platform 'Truth Social' rose for some time. But soon its price began to decrease again. After that, Trump increased the share price of the platform again through a single post. And as a result, he added half a billion dollars to his total wealth.
Shares of Trump Media and Technology Group rose on Wednesday. After that, many people started selling their shares and withdrawing the profit. As a result, shares of Trump's media and technology group fell 42 percent in early trading last Friday.
However, half an hour after the start of this transaction, Trump made a post on Truth Social about the company's shares. He writes, 'Market manipulators and short sellers are spreading some false, baseless and possibly illegal rumours. They are saying that I am interested in selling some shares of Truth Shares. Those rumors or statements are false. We have no desire to sell shares!
Shares of Truth Social suddenly rose after Trump's post. On Friday, its price rose about 15 percent. Trump is the company's single largest shareholder, and his shares, worth $114.75 million, are now worth about $3.7 billion. It was close to $3.2 billion in early trading on Friday.
Friday's share prices showed little improvement in weekly performance. But it is not much. Shares of Trump Media are up just 4.4 percent over the past five days.
The shares of the company are called 'meem stock'. Because its shares do not fluctuate based on the true fundamental value of the business. Rather, its share price fluctuates through social media, rumors or trends. So even after the company went public last March, its share price cannot be estimated. Shares of the Trump media this year have been seen as a barometer of Trump's electoral success. Its value quadrupled in five weeks. But in the last three days of last week, the share price fell by 41 percent. Then the day before the election, its shares started to rise.
Truth Social's business is much smaller than rival companies like X, TikTok and Instagram. The company is now in financial trouble. Last quarter its revenue was less than 1 million dollars.
Earlier, Trump said that he has no intention of selling his shares. Since the company's valuation is almost entirely dependent on Trump's ownership and participation in Truth Social, selling this stake could be difficult for him. But Friday's post left stock traders hopeful that Trump would stick with the company. He would even be associated with it during his tenure as US President.
