Shares of Trump Media & Technology Group have seen a notable resurgence, jumping over 10% on Wednesday afternoon. This upward trend comes after several weeks of decline that saw the stock hit alarming lows. Previously, the media company’s stock had been struggling, with a substantial drop following the expiration of its share lockup period last week.
As of now, Trump Media shares are priced at $14.09, reflecting a five percent increase from the previous closing. This marks the first time the stock has gained traction since the release of the lockup agreement, an event that enabled Donald Trump, the Republican presidential candidate and former president, to sell his shares. However, he has chosen to retain his stake, which seems to be positively influencing market momentum. This sudden surge has added approximately $200 million to the company’s overall market valuation, elevating its market capitalization to an impressive $2.82 billion.
Earlier this month, Trump reaffirmed his commitment to keep his shares, stating he has “no intention” of selling, despite the potential for substantial earnings from a stock sale, estimated at upwards of $2 billion. “I founded this company to ensure that my voice remained heard,” he emphasized during a press briefing at his golf course in Los Angeles. “Many speculate that I will liquidate my shares, but they are worth billions, and I have no financial need to do so.”
Currently, Trump holds about 114.75 million shares, which represents approximately 60% of Trump Media’s overall stock. A regulatory filing from June highlighted that Trump’s departure from the company would pose significant risks to its future viability.
In the weeks preceding the potential sale, the stock experienced a dramatic downturn, hitting a staggering 52-week low of $11.75—its lowest point since its public debut on the Nasdaq on March 26 after merging with Digital World Acquisition Corp, a special purpose acquisition company (SPAC). Following this period, the company’s market value has plummeted by around 76%.
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In a marketplace increasingly focused on the intersecting realms of technology and media, Trump’s steadfast ownership appears to act as a stabilizing force for the stock, attracting attention from both investors and analysts alike. As the political landscape evolves in the lead-up to the 2024 elections, the performance of Trump Media will likely remain a focal point for those tracking market movements and shareholder dynamics within the tech and media sectors.