Former U.S. President and current Republican Presidential nominee Donald Trump saw shares of his media company, Trump Media, hit a new post-merger low on Thursday. This happened just as Trump was expected to be able to sell his nearly $2 billion stake in the company. The stock, which trades as DJT on the Nasdaq, closed down nearly 6% at $14.70 per share.
Trump, who owns almost 57% of DJT’s outstanding shares, saw his stake worth nearly $1.7 billion at Thursday’s closing price. This accounts for almost half of Trump’s estimated net worth.
The lockup agreement that prevented Trump and other early investors from selling their shares was set to expire on Thursday, potentially leading to a sell-off of the company’s stock. While Trump himself stated that he has no plans to sell his stake, other insiders might take advantage of the opportunity to cash in.
Trump Media’s fortunes are closely tied to Trump himself, as his presence on Truth Social is a major draw for users. However, the company has faced challenges, with its stock price plummeting in recent months amid Trump’s presidential campaign against Democratic nominee Kamala Harris.
Despite a market capitalization of nearly $3 billion, Trump Media has reported losses of around $344 million on revenue of less than $2 million in the first half of the year. Its revenue relies solely on ad sales, with Truth Social attracting only a fraction of the user base of more established social media platforms.
The company’s stock has been volatile, rising and falling in response to events such as Trump’s assassination attempt, Harris’ rise in the polls, and Trump’s performance in debates. With the lockup expiration, Trump Media sought to block ARC Global from selling its shares immediately, but a judge denied the injunction.
In conclusion, Trump Media’s future remains uncertain as it navigates challenges in the market and strives to establish itself as a player in the social media landscape.
