Former President Donald Trump is nearing the opportunity to sell his shares in Truth Social’s parent company, a move that could happen next week on September 19 if he chooses to act. This potential sale comes after a lockup period of six months that prevented company insiders from divesting their holdings. With Trump owning a significant stake—nearly 115 million shares—his financial outlook is considerable, especially as the shares are estimated to be worth around $2 billion based on recent market valuations.
However, the landscape is not without its challenges. Trump’s decision to sell comes at a time when the value of Trump Media & Technology shares has taken a notable dip, down 17% in early trading following a recent presidential debate with Vice President Kamala Harris. The stock, which made its debut on the Nasdaq earlier this year, saw its peak valuation at roughly $79.38, but has since dropped significantly, with current prices hovering around $15.45.
The question of whether Trump will proceed with the sale looms large. On one hand, a substantial payout is within reach; on the other, the stock’s current worth is considerably less than what it was just months prior. The fluctuations have drawn attention, particularly after celebrity endorsements, such as that of Taylor Swift, support Harris’s candidacy, potentially impacting Trump’s public perception and stock performance.
Trump Media, the company that operates the social media platform Truth Social, was established in response to Trump’s bans from major platforms like Twitter and Facebook following the Capitol riot on January 6, 2021. However, the company has faced substantial financial hurdles, reporting a staggering loss of nearly $58.2 million last year against revenues of just $4.1 million.
Experts have categorized Trump Media shares as a “meme stock,” a term for stocks that gain traction due to social media buzz and retail investor enthusiasm, often disconnecting from traditional valuation metrics. This heightened volatility in trading has been particularly influenced by less experienced investors, making the stock susceptible to erratic market movements.
As Trump weighs the potential sale of his shares, the financial implications could reverberate across the market, and the ongoing narrative surrounding his political ambitions may further influence investor sentiment. With the 2024 presidential election on the horizon, all eyes will be on Trump and how his financial decisions intertwine with his political future.