Trump Media & Technology Group Stock Plummets as Lockup Period Ends
The stock of Trump Media & Technology Group is facing a significant decline following the end of the lockup period on Donald Trump’s shares. Trump Media, the company that owns the former president’s social media platform, Truth Social, saw its shares drop by 7% to $12.56 each on Monday morning.
This downward trend has led to a market capitalization of $2.5 billion, marking an almost 80% decrease from its peak after its Nasdaq debut on March 26. Despite this downward spiral, Trump himself has stated that he has no intentions of selling his stake in the company, even though he could potentially earn billions from a stock sale.
During a press conference at his golf course near Los Angeles, Trump emphasized the importance of maintaining his voice and stated that he does not need the money from selling his shares. He currently holds around 60% of Trump Media’s outstanding stock, totaling 114.75 million shares.
However, the company highlighted Trump’s divestment as one of the top risks to its business in a regulatory filing back in June. As Trump’s personal and political fortunes are closely tied to the company’s success, any adverse publicity or loss of his services could negatively impact Trump Media’s revenues and operations.
Looking ahead, as the presidential election approaches, the stock may continue to face challenges. According to John Rekenthaler, vice president of research at Morningstar, the stock could potentially plummet to zero or close to it if Trump were to lose the election.
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