On Friday, Donald Trump, the Republican presidential candidate, announced he has no plans to sell his shares in Trump Media, the company behind his Truth Social platform, despite upcoming opportunities to do so. This statement contributed to a surge in the company’s stock price, following a recent decline.
Trump holds approximately 57% of Trump Media, which experienced a dip in its stock value earlier this week after his televised debate with Democratic Vice President Kamala Harris. The recent stock surge follows a period of steady decline leading up to key dates this month when Trump and other insiders will be permitted to sell their shares.
In response to a Reuters inquiry, Trump stated, "No, I’m not selling. I’m not leaving. I love it. I think it’s great." Trump Media’s stock initially soared to nearly $10 billion in value after its market debut in March, largely driven by speculation related to Trump’s potential return to the presidency.
Since its debut, however, Trump Media’s stock has significantly declined, with losses accelerating recently as President Joe Biden dropped his reelection bid and Trump’s lead in polls diminished ahead of the November 5 election.
Under the terms of Trump Media's market listing, Trump and other insiders will be able to sell their shares starting later this month, unless the stock price remains above $12 for 20 trading days starting August 22. In that case, selling could begin on September 20; otherwise, it will start on September 26.
On Friday, Trump Media’s stock closed at $17.97, valuing Trump's stake at roughly $2 billion. Forbes estimates Trump’s total wealth at $3.7 billion.
Despite its high market value, Trump Media’s actual revenue is modest, comparable to two Starbucks locations, and the company reported a loss of $869,900 for the quarter ending June 30. Dennis Dick, a trader at Triple D Trading, criticized the company, stating, “There are no fundamentals behind this company. It doesn't have a path to profitability. It’s just driven by commentary and hopes and dreams.”
The impending expiration of the lock-up period for Trump’s shares has drawn significant attention from market observers, according to Jay Woods, chief global strategist at Freedom Capital Markets.
In related news, a New York judge has postponed Trump’s sentencing in his hush money criminal case to November 12, after the election, following a Supreme Court decision on presidential immunity, easing some immediate legal pressures.
Following his comments, the Nasdaq halted trading in Trump Media’s shares for brief periods due to volatility. Trump responded on Truth Social, questioning the trading halts and threatening to move his company’s listing to the New York Stock Exchange.
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