As Donald Trump dressed up as a garbage truck driver yesterday, pretending to relate to the working class, he lost $1.3 billion of his net worth in a single day. Which is what happens when your social media stock drops like a lead bin of trash.
In fact, The Trump Media & Technology Group took its biggest plunge since it went public in March, dropping 22.3% on Wednesday. And although different theories of why it dropped abound, the CEO of Tuttle Capital Management didn't act surprised.
"It's the way the game is played on this stuff," Tuttle explained to CNN, referring to Trump's meme stock. "The smarter traders know you make your money and get the hell out. And leave the not-smarter traders holding the bag."
From CNN:
At Tuesday's close above $51, Trump's dominant stake in the company was valued at about $5.9 billion. By the end of trading on Wednesday, the value of Trump's shares tumbled to $4.6 billion. That means Trump lost $1.3 billion in net worth in a single day.
It's not clear exactly what caused the sharp reversal for Trump Media, whose share price has become a proxy for how traders think this election will turn out. Trump Media did not release any major news that would explain the nosedive.
Some traders blamed the steep selling on technical factors and a loss of momentum for what has become a meme stock. …
"Fundamentally the valuation is a head scratcher but we have seen other meme stock narratives like AMC and GameStop on similar paths the last few years," Dan Ives, senior equity analyst at Wedbush Securities, told CNN in an email. "Truth Social is a fraction of X and other social media platforms in terms of users but with an election a week away this stock has become a litmus test for some investors on the White House race."
Previously: Truth Social's inflated $5 Billion valuation will leave MAGA minion investors broke, says finance expert