Presidential candidate Donald Trump sees his fortune dwindle after the stock market value of his media company imploded. Previously, it seemed that Trump could add around $6 billion after the IPO of Trump Media & Technology Group was surprisingly positive. “This is a crypto-like meme stock,” says critical investment strategist Wim Zwanenburg.
Trump sees fortunes collapse after share price falls
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This weekend it emerged that Trump’s company suffered a loss of $58 million last year, while it only had a turnover of $4.1 million. Investors on the stock exchange therefore discounted the share, causing the value to fall by more than a fifth. Zwanenburg is critical of the share. “This is crypto-like memestock.’ Trump also saw his own net worth decrease by a billion dollars as a result. He owns almost two-thirds of all shares in the company.
Trump has to wait for money
Trump cannot yet sell his shares. The package that Trump has in his hands comes with conditions, such as that he must hold it for at least six months before parts of his assets in the company can be sold. The investment strategist does not expect things to get better for Trump. “Economists say there is only marginal supply and demand around the stock.” According to him, a further decline in the share is therefore obvious. ‘If the flow of buyers stops and stops, it could experience another fall.’
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Yet America correspondent Jan Postma emphasizes that Trump’s fortune is still greater than a year ago. ‘No one knows exactly how much Trump is really worth, but Forbes estimated it last month – just after the IPO – at around 7 billion. A year ago that was still 2.6 billion.’ However, it is mainly about assets that exist on paper. ‘Losing a billion or more is of course huge, but everyone also saw it coming that this share would have to come down at some point.’
