Shares of Trump Media & Technology Group continue to plummet, reaching yet another concerning low after the conclusion of the lockup period for Donald Trump’s stock holdings. The company, which operates the former president’s social media platform, Truth Social, saw its shares drop by 7% on Monday, trading at $12.56. This decline has significantly impacted the company’s market capitalization, which now stands at approximately $2.5 billion—a staggering 80% decrease from its peak values following its Nasdaq debut.
Despite the ongoing speculation around Trump’s potential to sell his stock, he firmly maintains that he has “absolutely” no intention of divesting his shares. In his words, “I don’t need money,” emphasizing that his motivation for establishing the platform was to ensure that his voice remains active. Currently, Trump holds around 114.75 million shares, which accounts for about 60% of Trump Media’s total shares.
In regulatory documents from June, the company flagged Trump’s potential withdrawal as one of the primary risks to its operations. Even if Trump stays committed to his stake, the stock’s value has drastically eroded over recent weeks, particularly following his debate appearances, which have had a noticeable effect on the company’s prospects.
Analysts point out Trump’s personal and political fortunes are tightly intertwined with the company’s performance. Consequently, any negative press or decline in his political standing could adversely affect Trump Media’s revenue and market results. With the presidential election on the horizon, the stock may face further headwinds. John Rekenthaler, a research VP at Morningstar, raised alarms that the stock could diminish to negligible value if Trump loses the upcoming election.
As the landscape shifts in light of the forthcoming election, it remains to be seen how Trump Media will navigate these choppy waters, especially with the stakes so high for both the former president and the company he founded. Observers are keenly watching, given the potential impact of political fortunes on stock performance and investor sentiment surrounding Trump Media’s future.