Trump Media & Technology Group, which owns Truth Social, suffered a 22.3% drop in share price Wednesday, costing majority shareholder former President Donald Trump $1.3 billion in net worth. DJT stock fell from $51.51 a share Tuesday to $40.03 at Wednesday's close. File Photo by Will Oliver/EPA-EFE
Oct. 30 (UPI) -- After a weeks-long stock surge put Truth Social's value at more than Elon Musk's platform X, formerly known as Twitter, former President Donald Trump lost $1.3 billion of net worth Wednesday after the stock plummeted.
Truth Social owner Trump Media & Technology Group's share price dropped 22.3% Wednesday in its worst one-day loss since going public in March.
Trump -- the Republican presidential nominee -- owns nearly 57% of Trump Media, which trades as DJT on the Nasdaq. DJT stock fell from $51.51 a share on Tuesday to $40.03 by the end of trading Wednesday.
Before Wednesday's drop, Trump Media stock had quadrupled in value in the last five weeks since Sept. 23.
On Monday, traders attributed the stock surge to bets that Trump will win the White House in next week's election.
By Wednesday's close, traders blamed the selloff on a loss of momentum for the meme stock, which has gained viral popularity.
Meme stocks are defined as securities that do not trade on fundamentals, but rather hype and expectations. Trump Media had not released any news or numbers that would have caused the stock to nosedive.
In April, Trump Media stock plummeted after the Truth Social app revealed it recorded a net loss of more than $52 million last year on scant revenues of $4 million.
Despite the volatile nature of the stock, Trump has vowed not to sell his shares.