Trump Media Shares Plummet Amid Criticism From Barry Diller; Trump's Net Worth Takes A Hit

Trump Media, the parent company of the Truth Social app associated with former President Donald Trump, witnessed a significant downturn in its share prices following scathing remarks from Barry Diller, Chairman of IAC and Expedia. Diller's critique of Trump Media as "a scam" and its investors as "dopes" reverberated through the market, contributing to a more than 10% drop in the company's shares on Monday. This downturn reflects broader concerns about Trump Media's valuation and the viability of its business model.

Trump Media's stock experienced a tumultuous week, with shares dropping over 10% in early trading on Monday, following a 12% decline on the preceding Friday. The company's share price had surged to nearly $80 two weeks ago, buoyed by initial optimism surrounding its public listing. However, doubts about the company's revenue-generating potential and the sustainability of its growth trajectory have cast a shadow over its valuation.

Barry Diller's scathing assessment of Trump Media further exacerbated investor concerns. Diller characterized the company as "a scam" and dismissed its investors as "dopes," citing its lack of revenue as a fundamental flaw. Diller's comments underscore the skepticism surrounding Trump Media's business model and raise questions about its long-term prospects in a highly competitive social media landscape.

In response to Diller's remarks, a spokesperson for Trump Media defended the company, attributing the criticism to partisan bias. The spokesperson emphasized Truth Social's commitment to free speech and its refusal to suppress political expression, despite facing backlash from detractors. Former President Donald Trump, the majority shareholder of Trump Media, has yet to comment publicly on Diller's criticism or the company's recent stock performance.

The decline in Trump Media's share prices has taken a toll on former President Trump's net worth. His stake in the company, which was valued at approximately $5.2 billion at its peak, has dwindled to around $2.9 billion. This sharp decrease underscores the volatile nature of investments in media ventures, particularly those associated with high-profile figures like Trump.

Despite its initial surge in share prices, Trump Media's valuation has come under scrutiny from analysts and investors alike. The company's minimal revenue, coupled with its focus on the Truth Social app, which lags behind major social media platforms in terms of user base, has raised doubts about its ability to deliver sustainable returns. Some experts caution that Wall Street may have overvalued Trump Media, given its relatively modest financial performance and uncertain growth prospects.

The recent turbulence in Trump Media's stock reflects broader market volatility and uncertainty surrounding media ventures. While shares of the company and its associated blank check company have more than doubled in value this year, the sharp fluctuations underscore the speculative nature of investments in emerging technologies and social media platforms. Investors are closely monitoring developments in the sector, mindful of the potential risks and rewards associated with high-profile ventures like Trump Media.