Trump Media Shares Drop IDR 14.5 Trillion Since Kamala Harris Runs For US Presidential Election

Donald Trump/PHOTO via Instagram @realdonaldtrump

JAKARTA - The wealth of the former President of the United States (US) who is also a Republican candidate, Donald Trump, on social media, has shrunk.

As reported by CNN, Friday, August 2, Trump's share value in the company that owns Truth Social has fallen by 900 million US dollars or equivalent to Rp. 14.5 trillion since Vice President Kamala Harris participated in the nomination for the US Presidential Election on July 21.

Trump Media & Technology Group's share price has fallen by about 23 percent since then, including another sharp decline on Thursday, August 1 amid a wider market sell-off.

Trump's dominant stock value in the conservative social media company reached more than USD 4 billion on July 19, the last trading day before President Joe Biden left his candidacy and supported Harris. Since then, the amount has fallen to around USD 3.1 billion.

This sell-off comes as national polls and states 'dan fighting/showing stiff competition between Trump and Kamala Harris.

The shares are a means for Wall Street traders to bet on Trump's prospects to return to the White House, as Truth Social could become the presidential communications platform if Trump wins.

In June, Trump Media's share price spiked following Biden's poor debate performance. Shares jumped again last month after Trump survived an attempted murder in Pennsylvania.

At the same time, Truth Social Trump is struggling to gain traction in the world of social media.

In June, Truth Social's unique visitors fell 38 percent year over year, marking a drop in the platform for three consecutive months, according to Comscore data analyzed by TheRighting.

Trump Media's share price has experienced extreme turmoil since going public at the end of March.

Experts say Trump Media is just a meme, traded by hype and momentum, not fundamental.

Trump is the dominant figure in the company, owning 114.75 million shares, serving as chairman and most popular user on Truth Social. Trump's net worth is estimated at 5.9 billion US dollars by Bloomberg.

Even after the recent sell-off, Trump Media is still worth 5.1 billion US dollars.

Some experts have warned the company is considered too high drastically as its revenue is so small and Truth Social remains a small player on social media.