Truth Social's stock continues to plummet following Trump's felony convictions
What's the story
Donald Trump's social media company, Truth Social, has experienced a significant drop in stock value over the past two days.
This decline is part of a weeks-long downward trend that started after Trump was hit with 34 felony convictions last month.
On Monday alone, the stock price for Truth Social's parent firm, Trump Media & Technology Group, fell by 6.29%.
The decline continued on Tuesday, with the stock dropping around 10% by the end of the day to $31.31.
Legal impact
Stock decline linked to Trump's legal troubles
The stock market decline is linked to Trump's legal troubles, specifically his conviction for arranging hush money to influence the 2016 elections.
Since May 30, when Trump became the first US ex-President to be convicted of a felony, the stock has seen a substantial 40% decrease.
As the majority shareholder of the stock, Trump is tipped to have lost a staggering $267,367,500 due to this decline.
Financial loss
User engagement and financial performance down
In addition to the stock decline, Truth Social is also experiencing a significant drop in user engagement. Daily visits in May were down more than 21% compared to April.
The company reported a loss of $327.6 million in the first quarter of 2024.
Year-on-year (YoY) numbers for Truth Social show a decrease in user engagement, with a 39% drop in visits compared to the previous 12-month span.
Uncertainty
Truth Social's future uncertain amid Trump's TikTok move
A recent amendment to the company registration statement revealed that Truth Social cannot prevent Trump, from using other social media networks.
This comes after Trump's move to TikTok weeks ago to campaign on the highly popular platform.
With Trump now free to use any platform he chooses, it remains uncertain whether he will return to his former favorite platform X, potentially leaving Truth Social behind.