‘Huge Blow!’ CNN’s Wolf Blitzer Amazed At Trump ‘Staggering Losses’ As Trump Media Stock Tanks After Conviction

CNN anchor Wolf Blitzer and correspondent Matt Egan marveled at the “staggering losses” former President Donald Trump’s media company is suffering, which accelerated after his felony conviction.

Trump’s Trump Media and Technology (DJT) company began trading on the NASDAQ stock exchange in the spring and immediately shot up in initial trading. But, the following Monday saw the stock sharply fall after some negative financial disclosures, then rallied somewhat, but has now fallen sharply again.

On Friday’s edition of CNN Newsroom , Blitzer and Egan reported on the stock’s fall, and Egan traced the latest drop to Trump’s “guilty” verdicts on all 34 felony counts in the Stormy Daniels hush money trial :

WOLF BLITZER: Since Donald Trump’s felony convictions in New York three weeks ago, Truth Social’s parent company have lost roughly half its value.

Trump Media’s stock prices have been rapidly dropping since May, dealing a huge blow to the former president’s net worth!

CNN reporter Matt Egan is joining us right now. Matt, Truth Social is hurting right now big time. What is happening?

MATT EGAN: Well, this is a stock that is basically in free fall mode right now. Trump Media was trading above 50 bucks as recently as May 30th.

Of course, that’s the day that Donald Trump was convicted here in New York. And within seconds of that conviction, we saw the stock price plunge and it’s just snowballed.

Since then, this company has now lost over half of its value in just three weeks. It’s staggering losses!

The spark for this week’s sell -off was the fact that regulators gave a green light to investors who own what’s known as warrants to buy extra stock in this company. It’s a move that could allow Trump Media to raise extra money, but it’s also going to water down existing shareholders. And that has spooked some investors.

I don’t want to assign too much logic here, though, to the stock moves, because remember, experts have said that Trump Media is basically a meme stock. It is trading on hype and momentum, not fundamentals. It’s valued in the billions of dollars, even though it generates very little revenue.

Now, no matter the cause, this sell -off has wiped out a huge chunk of the value of the stock of the company’s chairman and leading shareholder, Donald Trump.

This stake was worth about $6 billion as recently as three weeks ago. Now it’s down to around $3 billion. And the selling may not be done.

I spoke to Jay Ritter. He’s a finance professor at the University of Florida. He’s been studying capital markets for 40 years. And he said, despite this sell -off, this stock is still, quote, wildly overpriced.

Remember, its main product is the conservative social network through social. It’s a very tiny player in social media. It is dwarfed in terms of the number of users by its rivals, including Reddit, Elon Musk X, and even Instagram’s threads.

And Trump Media, it generated less than $800 ,000 in revenue in the first quarter. That is very tiny. Normally, a company with that kind of revenue is valued in the millions of dollars, not the billions.

Watch above via CNN Newsroom .