Shares of Trump Media & Technology Group (DJT) experienced a significant decline, dropping over 10% on Monday to reach their lowest point since the company’s public debut in March. This downturn comes on the heels of the expiration of DJT’s lockup period, which officially ended last week.
The lockup period, lasting six months, restricted stakeholders—including former President Donald Trump—from selling or transferring their shares. Although the period expired last Thursday, Trump has publicly stated that he has no intention of selling his stake. “I have absolutely no intention of selling,” he told reporters during a press conference before the lockup expired, emphasizing his continued commitment to the platform. “I love it. I use it as a method of getting out my word.”
As noted by Yahoo Finance’s Ben Werschkul, the primary aim of a lockup period is to protect the interests of newly public companies and maintain stability before founders can cash out. Trump acknowledged the challenges posed by selling his shares, stating, “If I sell, it wouldn’t be the same, and I can understand that,” while also noting that he is aware his stake has been “whittled down” in value over recent months.
Since the expiration of the lockup, DJT’s shares have dropped approximately 20%, well below their record high of just over $79 per share. Trump retains about a 60% ownership stake in DJT, which currently values the company at around $2.5 billion, making his stake worth roughly $1.5 billion. Following the company’s public debut, Trump’s stake was valued at over $4.5 billion.
Trump Media went public in late March after merging with the special purpose acquisition company Digital World Acquisition Corp. However, the stock has faced volatility since then, with shares fluctuating in response to news cycles. For instance, in June, DJT’s stock surged after President Joe Biden stumbled in a presidential debate against Trump, only to fall back afterward.
Since Biden’s withdrawal from the presidential race a month later, shares have continued to struggle, particularly as Vice President Kamala Harris, the Democratic nominee, has consistently polled ahead of Trump.
In addition, Trump’s legal troubles have impacted stock performance. In May, he was found guilty on all counts of falsifying business records related to the 2016 presidential campaign, leading to a 5% drop in shares the following day. His sentencing has been postponed until November 26.
Overall, shares have plummeted about 65% since Trump Media’s public debut. Trump established Truth Social after being banned from major social media platforms like Facebook and Twitter (now X) following the January 6, 2021, Capitol riots. He returned to X in mid-August after nearly a year away.
Despite its aspirations to compete with established social media platforms, the financial health of Truth Social remains a point of concern. Last month, DJT reported a net loss of $16.4 million for the second quarter, with roughly half attributed to expenses from the SPAC deal. Additionally, the company reported revenue of just under $837,000 for the quarter ending June 30, marking a 30% decline year-over-year.
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