Donald Trump’s decision not to sell his stock in Trump Media & Technology Group (DJT) has been a hot topic in the financial world. Since the company went public in March, Trump has been subject to a six-month lockup period, preventing him from selling or transferring shares. However, that lockup period is set to expire on Thursday, giving Trump the option to cash in on his investment.
Despite the opportunity, Trump made it clear that he has no intention of selling his shares. In fact, he expressed his love for the company and how he uses it to communicate his message. This statement caused DJT shares to surge initially, but they have since retreated, falling over 10% in the past week.
At present, Trump holds about a 60% interest in DJT, giving him a stake worth approximately $2 billion at the current market cap of $3.3 billion. This is a significant decrease from the initial value of his stake, which was over $4.5 billion when the company went public.
The journey of Trump Media in the stock market has been a rollercoaster ride. The stock has experienced significant fluctuations tied to various events, including political developments. For instance, a spike and subsequent drop in stock value occurred after Joe Biden’s stumble in a debate with Trump, leading to Biden’s withdrawal from the presidential race.
The recent downward trend in DJT shares can be attributed to Vice President Kamala Harris’s lead in the polls over Trump. Additionally, Trump’s legal troubles, such as being found guilty on multiple charges related to the 2016 presidential campaign, have impacted the stock price negatively.
As Trump navigates the stock market waters with his media company, Truth Social, it will be interesting to see how the company’s fundamentals evolve. Despite reporting a net loss in the second quarter and a drop in revenue, Trump remains determined to challenge social media giants like Facebook and Twitter.
Extreme Investor Network provides exclusive insights and analysis on the financial landscape, offering a unique perspective on market trends and investment opportunities. Stay updated with the latest developments in the stock market by following our expert analysis and recommendations. Join us on Extreme Investor Network to explore the world of finance like never before.