Shares of Trump Media & Technology Group, owner of the recently launched Truth Social platform, continue to spiral downward, experiencing a drop of an additional 5% as of mid-day Friday. This marks the seventh losing day out of the past eight for the company's shares. Currently trading below $31, Trump Media now sits far below its intraday peak of nearly $80 on March 26, the day it debuted on the Nasdaq.

Investors who purchased Trump Media shares at the closing high of $66.22 on March 27 now face losses of over 50%. This steep selloff has had a significant impact on former President Donald Trump's net worth, as he holds a substantial stake of 78.8 million shares in the company. Initially valued at $5.2 billion at the stock's highest point, the value of Trump's stake has plummeted to approximately $2.4 billion.

Trump Media has been grappling with declining user numbers and minimal revenue, with losses amounting to $58 million in 2023 against meager revenue of $4.1 million. Despite these challenges, the company's valuation remains in the billions of dollars, leaving experts puzzled.

One method commonly used to assess the value of stocks is the price-to-sales ratio. Even if Trump Media's share price were to crash to just over $1, it would still have a significantly higher price-to-sales ratio compared to major tech corporations such as Meta, Pinterest, Snap, Reddit, or Rumble, according to Renaissance Capital's Matthew Kennedy.

In response to criticism, Shannon Devine, a spokesperson for Trump Media, defended the company's position, stating, "Truth Social created a free-speech beachhead against Big Tech for a fraction of the start-up and operating costs that the legacy tech corporations incurred. We have no debt, more than $200 million in the bank, and the support of hundreds of thousands of retail investors who fervently believe in our mission."

While recent market activity has taken its toll on Trump Media's stock, it should be noted that the company's shares are still up over 74% for the year, accounting for gains from the blank-check company it merged with.

As Trump Media & Technology Group faces continued turbulence, investors and industry experts are closely monitoring the fate of both the company and former President Trump's wealth.