Proactive Investors - Donald Trump has fallen off a list of the world’s 500 richest people after the parent company to his Truth Social has plummeted in value recently.
Former president Trump had clawed his way onto the Bloomberg Billionaire Index following his social media’s listing on the New York Stock Exchange last month.
This was as shares in Truth Social parent Trump Media & Technology Group Corp (NASDAQ:DJT) rallied to a high of roughly US$71 following a merger with shell company Digital World Acquisition Corp.
However, the stock has since slipped back to US$37.47, as of Tuesday’s close, wiping billions off the company’s and majority shareholder Trump’s value.
Trump had been worth around US$6.5 billion when the shares peaked in late March, though this was estimated by Bloomberg to sit at US$4.8 billion come Tuesday.
Trump was said to have fallen off the list of the world’s 500 richest people to rank at number 652 as a result.
According to Securities and Exchange Commission filings, Trump Media lost over US$58 million last year and generated US$4.1 million in revenue.
Trump Media, which relies on advertising revenue from Truth Social, added at the time that it expected to face losses and negative cash flow for the “foreseeable future”.
Analysts had previously warned that underlying business fundamentals would inevitably push through to the stock at some point, with many investors appearing to be buying shares solely in support of Trump.
Shares were down a further 1.9% at US$36.75 in Wednesday's pre-market trading.