According to a new Forbes report, the stock in Donald Trump's media company is at serious risk of soon collapsing.
Twitter was an important part of Donald Trump's rise from businessman to political candidate to the White House and he continued to use the website throughout his presidency. Trump was barred from the site following the January 6th insurrection.
The former President created a Twitter knock-off site, Truth Social, to combat the ban. Trump Media Group, the company's owner, was given an "absurd valuation" despite its lack of success or profit. But that could be coming to an end.
The Forbes piece noted that Trump could get in front of the collapse by selling shares before September, "Therefore, selling now would allow him to capture current prices and raise cash prior to the expected September selling by others."
John S. Tobey continued:
"Trump Media stock is now down 70% in less than six months from the March 25 merger, indicating all is not well with the company. Second, Donald Trump has been absent from the company as he makes his run for the presidency, raising the question of when/if he will return."
The piece closed, "At that point, many fans would face the possibility of DJT continuing to make its way downward until it reaches its low fundamental level."