Donald Trump recently made headlines when he publicly declared that he has no plans to sell his stock in Trump Media & Technology Group, the parent company of Truth Social. This statement comes just as he gains the legal ability to sell shares of the company, a situation not available since Truth Social went public back in March.
In his remarks at a press conference, Trump emphasized his attachment to the platform, stating, “I absolutely love it. I use it as a means to share my message.” This affirmation follows a notable increase in stock price, which surged by double digits after his announcement, although it has since dropped roughly 10% over the past week, trading at around $16 as of early Wednesday.
The former president and key stakeholders were bound by a six-month lockup period that is set to expire on Thursday. This restriction is designed to stabilize the stock price during the early phases of a company’s public offering. Despite this predicament, Trump received a significant cash payout in late April after hitting a key financial milestone that earned him an additional $1.2 billion.
Trump holds about a 60% stake in DJT, the ticker symbol for his company, which has a market capitalization of approximately $3.3 billion. His shares are currently valued around $2 billion, a stark contrast to over $4.5 billion at the time of the company’s initial public offering.
The journey of Trump Media has not been without its challenges since its launch on the Nasdaq following a merger with Digital World Acquisition Corp. The stock has faced volatility, often reacting sharply to developments in the news cycle, particularly in the context of Trump’s political ambitions.
In recent months, market sentiment regarding the stock has fluctuated, especially following President Biden’s debate performance and subsequent political maneuvers leading to speculation about his withdrawal from the presidential race. Furthermore, following Trump’s conviction on all counts of falsifying business records relating to the 2016 campaign, DJT shares saw a immediate decline, reflecting investor concern.
The financial performance of Trump Media has raised eyebrows as well. In its recent quarterly results, the company reported a staggering net loss of $16.4 million, highlighting difficulties tied to expenses from its previous SPAC engagement. Revenue for the quarter was reported at just under $837,000, marking a concerning 30% drop compared to the previous year.
As Truth Social strives to carve out a niche in the competitive landscape dominated by giants like Facebook and Twitter— from which Trump was banned post-January 6 riot— observers remain skeptical about the platform’s fundamentals amidst its ongoing struggles.
In a twist of fate, Trump has reinstated his presence on major social media platforms, further complicating the narrative for Truth Social as it tries to attract users. The stock also recently reached a new low, reflecting the growing uncertainty around both the business and the political climate as potential shifts in leadership loom.
Throughout this tumultuous period, Trump’s entrepreneurial ventures continue to attract intense scrutiny, both for their impact on the stock market and ongoing public interest as he navigates the complexities of returning to the political arena. With the expiration of the lockup period fast approaching, many are left speculating not only on his next moves regarding stock sales but also the broader implications for his political and media presence.