Donald Trump has recently made headlines by stating his intention not to sell his shares in Trump Media & Technology Group, the parent company of Truth Social. However, starting Thursday, he will have the legal option to sell, a possibility that has not been available since the company made its public debut earlier this year in March.
At a recent press conference, the former president emphasized, “I have absolutely no intention of selling. I love it. It’s my way of getting my message across.” His comments came right after the stock price of DJT— the ticker symbol for Trump Media— surged by more than 10% following his announcement. Yet, this surge was short-lived, and the stock has since dropped over 10%, closing below $14.50. This positions it near the lower end of its 52-week trading range and significantly below its all-time high of over $79 per share.
Due to regulations for newly public companies, stakeholders, including Trump, were subject to a six-month lockup that restricted them from selling or transferring shares. With that lockup period ending soon, speculation is rife about what Trump might decide to do. Nevertheless, he reflected on the possible implications of a sale: “If I sell, it wouldn’t be the same, and I can understand that,” implying a personal attachment to his stake despite the financial fluctuations.
After the company went public, Trump’s stake was worth approximately $4.5 billion, but it now stands at around $2 billion, correlating with a current market cap for Trump Media of about $3.3 billion. A few months ago, the company reported a net loss of $16.4 million, attributing a significant portion of that loss to costs linked to its merger with Digital World Acquisition Corp., the special purpose acquisition company (SPAC) that brought it to the public market.
Truth Social was created by Trump as an alternative to mainstream social media channels after being banned from platforms like Facebook and Twitter following the events of January 6, 2021. Recently reinstated on these platforms, Trump is now in a competition for user engagement against established players in the market.
In recent months, the stock price has fluctuated significantly, influenced by political events and Trump’s ongoing presidential campaign for the 2024 election. Just last month, shares dipped following Trump’s conviction on multiple counts of falsifying business records, marking a notable drop in the company’s stock price as public sentiment began to shift.
As the election season heats up, uncertainty surrounds Trump Media’s future, particularly with Vice President Kamala Harris now leading in polling against Trump. With the decreased confidence in Truth Social’s profitability, analysts and investors alike will be keenly watching the unfolding developments, especially as Trump’s legal issues continue to surface.
Ultimately, while Trump remains committed to his platform, the intertwining of politics, media influence, and stock market dynamics will determine not only his financial future but also the sustainability of his venture in the highly competitive social media landscape.