In a striking turn of events, Donald Trump’s financial empire is facing a significant downturn, with his stock plummeting dramatically. As of the latest reports, shares of Truth Social are crashing, down 10% at the opening bell and likely to settle below $5 before the month concludes. This alarming trend has raised eyebrows across Wall Street, and for good reason.

Michael Popok, a legal analyst, has been vocal about the implications of Truth Social’s latest filings with the Securities and Exchange Commission (SEC). He argues that if investors took a moment to sift through the required disclosures—filled with risk factors—they would think twice before investing in Trump’s venture. The prospectus, which spans 30 pages of densely packed information, reveals the precariousness of Trump’s company and the multitude of risks tied directly to Trump himself.

At its peak, Truth Social’s stock soared to $90, buoyed by the initial excitement surrounding Trump’s brand. However, the reality is starkly different today, with the stock now trading well below $10. The company’s financial health is questionable at best, with no substantial revenue and mounting losses each month. The absence of a solid user base and the reliance on Trump’s persona as the primary draw for the platform raises serious concerns about its sustainability.

Popok highlights several alarming disclosures in the prospectus, particularly those related to Trump’s legal troubles. The document explicitly states that the company’s success hinges on Trump’s popularity and reputation. Should his public image suffer due to negative publicity or legal issues—including the potential of incarceration—Truth Social’s viability would be severely compromised. This admission is not just a footnote; it is a fundamental acknowledgment of the risks investors face.

The prospectus even goes so far as to mention the “death, incarceration, or incapacity” of Trump as potential risks to the company. This stark reality check suggests that investors are essentially betting on the longevity of a figure whose future is uncertain at best. The notion that Trump could go to jail is not merely speculative; it is a tangible risk acknowledged by the company itself.

Moreover, the prospectus lists numerous ongoing legal proceedings involving Trump, painting a picture of a man besieged by lawsuits and criminal cases. This unprecedented situation for a former president raises serious questions about his ability to lead a business effectively. The document details various legal battles, including a $500 million fraud case and multiple indictments that could have dire consequences for Truth Social.

The ramifications of these disclosures extend beyond mere speculation. They highlight a fundamental flaw in Trump’s business model: the inability to detach from a leader whose legal troubles could derail the company at any moment. The prospectus admits that the company cannot terminate its licensing agreement with Trump, effectively locking them into a relationship that could prove disastrous.

As the stock continues to tumble, it becomes increasingly clear that Trump’s attempts to prop up his company through social media claims and press conferences are not enough to sustain investor confidence. Popok argues that such statements could constitute securities fraud, as they mislead potential investors about the company’s true financial state.

The market’s reaction is telling. Investors are wary, and the cold, hard data reflects a lack of faith in Trump’s ability to turn things around. Brokers and traders on Wall Street recognize that investing in Truth Social is akin to gambling on a sinking ship. The stock’s decline is not just a reflection of Trump’s brand but a broader commentary on the risks associated with investing in a company so heavily reliant on a single individual with a tumultuous past.

In conclusion, Trump’s biggest scam yet appears to be unraveling before our eyes. The financial mismanagement and legal entanglements surrounding Truth Social serve as a cautionary tale for investors. As the stock continues to plummet, it is evident that the once-glamorous facade of Trump’s business ventures is crumbling, leaving behind a trail of financial chaos and uncertainty. With the stakes this high, it remains to be seen how much longer Trump can maintain his grip on this failing enterprise.