Trump Media plummets to new low on the first trading day the former president can sell his shares
Shares of Trump Media have slumped to new lows on the first trading day that its biggest shareholder, former President Donald Trump, is free to sell his stake in the company behind the Truth Social platform
Shares of Trump Media & Technology Group slumped to their lowest level ever at the opening bell Friday, the first trading day that its biggest shareholder, former President Donald Trump, is free to sell his stake in the company behind the Truth Social platform.
Shares of Trump Media, commonly called TMTG, tumbled almost 7% to $13.73, putting the value of the company at less than $3 billion. Trump owns more than half of it.
Trump and other insiders in the company have been unable to cash in on the highly volatile stock due standard lock-up agreements that prevent big stakeholders from selling stakes for a set period after a company becomes publicly traded. TMTG began trading publicly in March.
Trump owns nearly 115 million shares of the company, according to filings with the Securities and Exchange Commission. Based on TMTG's share price early Friday, Trump's holdings are worth, at least on paper, about $1.6 billion. It's usually not in the best interest of big stakeholders to even attempt to sell large tranches of their stock because it could risk a broader sell-off.
Since going public, shares in Trump Media have gyrated wildly, often depending on news related to Trump, the Republican presidential nominee.
One week ago, the company's shares jumped nearly 12% after Trump said he wouldn't sell shares when the lock-up period lifted. The stock dipped more than 10% following the debate earlier this month between Trump and the Democrats' nominee, Vice President Kamala Harris. In mid-July, shares climbed more than 31% in
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