In a recent press conference, Donald Trump stated his intentions regarding his investment in Trump Media & Technology Group (stock ticker: DJT), affirming he would not be selling his shares. This announcement comes at a pivotal time for the former president, as the six-month lockup period preventing stakeholders from selling shares is set to expire, allowing for potential trades starting Thursday. This option has not been available since DJT went public in March.
“I have absolutely no intention of selling,” Trump declared, emphasizing his dedication to the platform and its purpose as a means of conveying his message. After this declaration, DJT shares experienced a significant surge, reflecting market excitement, although they have recently retraced those gains with a decline of over 10% in the days leading up to Thursday’s trading.
The lockup period, designed to stabilize a newly public company’s stock performance, was particularly relevant given the recent volatility in Trump Media’s share price. In late April, Trump did manage to cash in on his investment during a high point, securing an additional $1.2 billion after the stock reached a milestone.
While Trump holds approximately 60% of DJT, which currently boasts a market capitalization of around $3.3 billion, his investment was valued at more than $4.5 billion at the time of the company’s debut. The stock has faced significant turbulence, oscillating with the news cycle and events surrounding the political landscape. After Biden’s mishap during a presidential debate in June, DJT shares climbed yet subsequently fell as President Biden withdrew from the race and Vice President Kamala Harris began to pull ahead in popularity polls.
Despite his public commitments, share prices have slumped about 60% since their initial high, leaving them near the lower end of their 52-week trading range, in stark contrast to their peak of over $79 per share. The fundamentals of the company are also under scrutiny, especially following the release of its second-quarter results, which revealed a net loss of $16.4 million and a year-over-year revenue drop of 30%, generating just under $837,000 in revenue.
This tumultuous backdrop for Truth Social, which emerged as Trump’s response to his removal from mainstream social media platforms like Facebook and Twitter following the January 6 Capitol riots, is indicative of the broader challenges facing new entrants in the competitive social media landscape. Since his reinstatement on these platforms in mid-August, questions about how Truth Social will differentiate itself and maintain user engagement have intensified.
Trump’s commentary and the potential for new developments regarding his stock may have significant implications, both for his personal finances and for the trajectory of his social media venture. As the political landscape evolves and public interest fluctuates, all eyes will remain on DJT and how it performs in the wake of these announcements and amid ongoing challenges.