Trump Media Shares Plummet Ahead of Potential Stake Sell-Off by Trump
Trump Media shares continued to decline on Wednesday, closing at $16.98 per share—below their end-of-2023 value. The stock’s slump comes ahead of a key date when majority owner Donald Trump can begin offloading his stake. This drop followed a brief surge in mid-July due to a failed assassination attempt on Trump, which had temporarily boosted the stock.
Trump Media’s stock price, which once peaked at $79.38 per share during its Nasdaq debut in late March, has tumbled by more than 75%. The stock has gyrated since, often seen as a meme stock tied to Trump’s political fortunes. Digital World Acquisition Corp. (DWAC), the SPAC that merged with Trump Media, closed at $17.50 on the last trading day of 2023.
A Trump Media spokesperson told CNBC the company is expanding its platform and maintaining a robust financial position, having launched an in-app streaming service and reported $344 million in cash equivalents with zero debt for Q2 2024. Despite consecutive fiscal losses and minimal ad revenue from Truth Social, the company’s market capitalization stands at about $3.5 billion—down from nearly $8 billion post-merger.
Trump holds nearly 59% of Trump Media’s shares, valued at just under $2 billion at the current stock price, representing half his total net worth. The lock-up agreement preventing Trump and insiders from selling shares expires on September 19, sparking speculation about potential impacts on the stock if Trump decides to sell.
Concerns are mounting as Trump and the company sought to block two firms from selling 18 million shares post-lockup—a request denied by a Florida judge. Meanwhile, Trump has been active on other social media platforms, though he continues to praise Truth Social.
In a recent interview with podcaster Lex Fridman, Trump lauded Truth Social as a powerful platform, highlighting its broad reach and success.
For more insights into the evolving political landscape and market movements, stay tuned to CNBC.
Original Story https://www.cnbc.com/2024/09/04/trump-media-djt-negative-ytd.html
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