Shares of Trump Media and Technology Group (DJT) fell more than 6% on Monday, trading at their lowest level since the social media company went public in March. The moves come after a lockup period on the sale of Trump Media and Technology officially expired last week.
Stakeholders, including former President Donald Trump, were subject to a six-month lockup period before they could sell or transfer shares. The lockup period expired last Thursday, though Trump said he would not sell his stake.
“I have absolutely no intention of selling my company. I love it. I use it as a way to express my opinion,” the former president told reporters at a news conference before the ban ended.
As Yahoo Finance’s Ben Werschkuhl explains, the purpose of the lock-up period is to protect the interests of the newly public company and allow it to maintain stability before its founders can cash out.
“If I sold, it wouldn’t be the same, and I can understand that,” Trump said at the time, adding that he knew his stake had “shrunk” in recent months.
Shares are down about 15% since Thursday and remain off their all-time high of more than $79 per share.
Trump maintains nearly 60% interest At current levels, Trump Media boasts a market cap of about $2.5 billion, giving the former president a stake worth about $1.5 billion. Immediately after the company went public, Trump’s stake was worth more than $4.5 billion.
Trump Media went public on the Nasdaq in late March after to merge With special purpose acquisition company Digital World Acquisition Corp. But the stock has been on a rollercoaster ride since then, with shares swinging between highs and lows as moves were typically tied to a volatile news cycle.
In June, the company’s shares rose (and then fell) after current commander-in-chief Joe Biden stumbled in his first presidential debate with Trump in 2024. Biden dropped out of the race a month later.
Since Biden’s announcement, stocks have remained under pressure as Vice President Kamala Harris, the Democratic presidential nominee, has gained ground on Trump. In recent polls.
In May, Trump He was convicted. On all 34 counts of falsifying business records to influence the 2016 presidential campaign — a verdict that sent the stock down 5% the day after the conviction. Lately delayed Until November 26th.
The company’s shares have fallen about 65% since its IPO.
Trump founded Truth Social after being kicked off major social media apps like Facebook (META) and Twitter, now known as X, in the wake of the Capitol riots on January 6, 2021. Trump has since returned to those platforms. He officially returned to X in mid-August after a hiatus of about a year.
But as Truth Social attempts to compete with established social media companies, the company’s fundamentals have long been in question.
Last month, DJT Reported The second-quarter results revealed a net loss of $16.4 million, about half of which was related to expenses related to the company’s SPAC deal. The company also reported revenue of just under $837,000 for the quarter ended June 30, down 30% year over year.
Alexandra Channel She is a senior reporter at Yahoo Finance. You can follow her on X @Ali_Canal, LinkedIn, You can email her at alexandra.canal@yahoofinance.com.
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