Donald Trump has confirmed that he is retaining his majority stake in Trump Media & Technology Group, the company behind Truth Social. Despite recent fluctuations in the company’s stock, especially after his debate with Democratic vice presidential candidate Kamala Harris, Trump assured reporters in Rancho Palos Verdes, California, “No, I’m not selling. I love it. I think it’s great.”
Following the former president’s remarks, shares of Trump Media surged as much as 30%, ultimately stabilizing with an 11% increase. Trump’s ownership accounts for approximately 57% of the company, which recently faced a downward trend in its stock price due to concerns about key selling dates for insiders, including Trump himself.
Amidst speculation about selling, which has surrounded the company since its stock market debut in March, Trump emphasized his commitment to his platform. The company’s stock has been particularly popular among retail investors, serving as a speculative avenue linked to Trump’s political prospects, especially as he vies for a second presidential term.
Since the stock market launch, Trump Media’s shares have seen a dramatic decline in value, exacerbated by recent political developments, including President Biden’s withdrawal from the 2024 race and Trump’s dropping numbers in opinion polls as the election approaches. The looming end to a trading lock-up for insiders, which permits them to sell shares, has been a focal point for investors. Depending on stock performance, Trump may be eligible to sell shares starting September 20 or as late as September 26.
Currently, Trump Media shares closed around $17.89, valuing Trump’s stake at approximately $2 billion, while Forbes estimates his total wealth at around $3.7 billion. Notably, the company’s revenue performance has been lackluster, akin to that of merely a couple of Starbucks outlets. Analysts are suggesting that the stock’s market value, estimated at $3.6 billion, is disproportionate to the company’s actual financial fundamentals, highlighted by a reported loss of nearly $869,900 in the last quarter.
Market watchers have closely monitored Trump’s statements and the approaching expiration of his stock lock-up, eager to gauge the implications for both the market and his potential candidacy. Additionally, a New York judge recently postponed Trump’s sentencing in a separate criminal case to after the election, allowing some respite related to his mounting legal fees.
As the political landscape evolves, the ongoing fate of Trump Media and its stock remains uncertain, with many awaiting the outcomes of future trading sessions and political events as pivotal to both Trump’s ambitions and investor confidence.