Trump Media & Technology Group’s stock has taken a significant nosedive, reaching unprecedented lows following the expiration of the lockup period on Donald Trump’s shares. On a particularly tough Monday, shares plummeted by 8%, settling at $12.44 each. This decline brought the company’s market capitalization down to a staggering $2.5 billion, marking an almost 80% drop from the heights it reached shortly after its debut on the Nasdaq in late March.
Despite ongoing speculation about his financial interests, Trump recently asserted that he has “absolutely” no intention of liquidating his stake in the company, which encompasses the social media platform Truth Social. During a press conference at his golf course near Los Angeles on September 13, he emphasized that his motivation for creating the platform was to maintain his voice amidst what he perceives as censorship. He confidently stated, “A lot of people think that I will sell my shares… but I don’t want to sell my shares. I don’t need money.”
Currently, Trump owns approximately 60% of the company with 114.75 million shares. This substantial holding gives him a prominent position, one potentially at risk given recent company filings that have highlighted his divestment as a significant concern for Trump Media’s business prospects.
In the weeks leading up to this stock drop, the market has reacted negatively, particularly after Trump’s recent debate against Vice President Kamala Harris. Analysts note that the company’s fortunes are closely tied to Trump’s political narrative and personal branding. A report from Morningstar has suggested that if Trump were to lose the upcoming presidential election, the stock could plummet further, potentially nearing zero.
As the 2024 presidential election inches closer, stock observers are wary that further market fluctuations may arise as Trump’s popularity sways and the external political landscape evolves. With Trump’s political career at a pivotal stage, the performance of Trump Media’s stock will likely continue to mirror the ups and downs of his campaign and personal endeavors.
In summary, the challenges surrounding Trump Media go beyond stock valuation; they are closely interwoven with the personal and political fortunes of its founder. As the election approaches, investors will be watching closely, and the trajectory of the stock may well reflect the outcome of one of the most contentious political battles in modern history.