Title: Trump Media & Technology Group Sees $2.8 Billion Market Value Decline as Retail Traders Begin Selling

In a significant blow to Trump Media & Technology Group Corp., the social media company owned mostly by former president Donald Trump, has witnessed a staggering $2.8 billion decline in its market value. This sharp drop comes as retail traders, who had eagerly bid up the stock last month, began to sell. The stock has plummeted by 37% since its close on March 26, falling below the level at which it was trading on March 22 when the tie-up with the blank-check firm, Digital World Acquisition Corp, was approved by investors.

Following the merger with DWAC, Trump Media, which controls the popular platform Truth Social, experienced an initial surge in its stock price. However, it has struggled to maintain the attention of individual investors who purchased shares to show support for the former president's 2024 re-election campaign.

This decline in stock value has also had a direct impact on Trump himself, as the paper windfall for the former president has dropped by $1.6 billion, leaving him with approximately $2.9 billion in paper wealth. However, Trump will have to wait for six months before being able to sell his shares due to a lock-up agreement.

Despite the recent decline, Trump Media still holds a market capitalization of nearly $5 billion. Remarkably, this valuation remains high, considering that the company generated a modest $4.1 million in revenue last year. The significantly high valuation has made it both costly and risky for short sellers, who face annual financing costs of over 450% to borrow Trump Media shares, according to brokerages.

The decline in Trump Media's market value bears resemblance to previous events involving meme stocks, such as GameStop Corp, and other de-SPACs that went public through blank-check deals. These companies experienced initial fluctuations in their stock performance before witnessing a decline. Disturbingly, more than one-fifth of the approximately 500 SPAC deals that have closed since 2019 are currently trading below $1 each, representing a staggering 90% plunge. In some cases, these companies saw their share prices surge due to frenzies fueled by retail traders, resulting in significant losses for some investors.

As this developing situation unfolds, it remains to be seen whether Trump Media can recover from the recent market volatility and regain the attention of individual investors who were initially enthused by the merger with DWAC. The future of Truth Social and its impact on the media landscape may hinge on the company's ability to adapt and attract non-speculative investors in the coming months.