Trump's Social Media Posts Have Paid Off: What Started As An Online Blog Is Now A $4 Billion Company

Former President Donald Trump's love for social media is no secret. Trump's posts have been so controversial that they forced the microblogging platform X, formerly Twitter, to suspend the billionaire politician's account on the website in 2021. 

But this has not stopped him from publishing his thoughts on the internet. The real estate mogul has since started Truth Social, a platform that allows people to post their thoughts freely without worrying about being censored. 

Truth Social: Trump's Big Bet On The Social Media Space 

The former president launched Truth Social through his media arm Trump Media & Technology Group Corp. DJT in 2022 and listed it on the Nasdaq Stock Exchange last month. He has a nearly 58% stake in Trump Media, making him the company's largest shareholder. It currently has no debt and over $200 million in cash reserves. 

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Trump gained big following Trump Media's public listing with his net worth skyrocketing by over $4 billion. Trump was named in the Bloomberg Billionaires Index as his net worth topped $6.5 billion, placing him within the ranks of the world's top 500 richest people. 

However, the glory was short-lived. The company, which generated just $4.1 million in revenue and reported losses amounting to nearly $58 million in 2022, saw its shares plunge by nearly 20% over the last week. Unsurprisingly, Trump's net worth has plummeted sharply over this period, resulting in him being booted from the coveted Bloomberg Billionaire's Index. 

Trump's Ace Card: Appealing to the Masses

As Trump gears up for reelection this fall, he is appealing to the masses to boost Truth Social's popularity and its stock price. He cannot liquidate his stake in the media platform for six months. 

Trump also is involved in several lawsuits that could be expensive for him. In a largely anticipated move, the billionaire presidential candidate has been appealing to his devout followers through Truth Social.

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"If people who believe in putting America First and want to Make America Great Again, support TRUTH, we will be your Voice like never before, and a Real Voice is what our Country needs, because we are in decline, and must bring America to Greatness. Think of this as a Movement, the Greatest Movement in the History of our Country," Trump posted on the platform on April 12. 

Burgeoning Media Giant Or Meme Stock?

While the majority of traders look at Trump Media as a meme stock, not many have the guts to short it. The stock is the most expensive trading on any U.S. exchange to sell short, according to S3 Partners.  

S3 Partners Managing Director Ihor Dusaniwsky said investors seeking to borrow Trump Media shares to sell short paid annual financing costs ranging from 750% to 900% of the stock price on April 3. This translates to daily costs of approximately $1 to $1.22 per share borrowed.

While most traders anticipate Trump Media's shares to plunge further, his cultlike following and popularity make it challenging. 

"It is the primary way I get the word out and, for better or worse, people want to hear what I have to say,"  Trump posted. 

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