Shares of Trump Media & Technology Group (DJT) fell more than 6% on Monday, trading at their lowest level since the social media company went public in March. The move came after DJT’s lockup period officially ended last week.
Shareholders, including former President Donald Trump, were subject to a six-month lockup period before they could sell or transfer their shares. That period ended last Thursday, but Mr. Trump has said he will not sell his shares.
“I have no intention of selling,” the former president told reporters at a news conference before the deadline for selling expired. “I love selling. I use it as a way to get my message across.”
As Yahoo Finance’s Ben Warschle explains in detail, the purpose of the lockup period is to protect the interests of an IPO company and keep it stable until its founders can cash out.
“If I sold it, it wouldn’t be the same, and I understand that,” Trump said at the time, adding that he was aware his holdings had “decreased” in recent months.
The stock is down about 15% since Thursday and remains far from its all-time high of just over $79 a share.
Trump said about 60% interest At DJT’s current levels, Trump Media’s market capitalization would be about $2.5 billion, and the former president’s stake would be worth about $1.5 billion. Shortly after the company went public, Trump’s stake was worth just over $4.5 billion.
Trump Media went public on the Nasdaq in late March. merger The company partnered with special purpose acquisition company Digital World Acquisition Corp. But the stock has been volatile since then, bouncing between highs and lows as the fluctuations are tied to a volatile news cycle.
Stocks soared (and then fell) in June after incumbent President Joe Biden stumbled in the first 2024 presidential debate with President Trump. Biden dropped out of the race a month later.
Since Biden’s announcement, stocks have continued to trend lower as Vice President Kamala Harris, the Democratic presidential nominee, takes a lead over President Trump. In the latest opinion poll.
Trump in May Convicted He was convicted on 34 counts of falsifying business records with the intent to influence the 2016 presidential election. The day after the verdict, the stock price fell 5%. Recently delayed Until November 26th.
Since the company’s IPO, its shares have fallen about 65%.
Trump founded TruthSocial after he was banned from major social media apps, including Facebook (META) and Twitter (the platform now known as X), following the Jan. 6, 2021, attack on the Capitol. Trump has since returned to those platforms. He officially rejoined X in mid-August after a roughly year-long hiatus.
But as Truth Social seeks to challenge social media incumbents, the company’s fundamentals have long been in question.
Last month, D.J.T. Reported The company reported a net loss of $16.4 million in its second-quarter results, about half of which was due to costs related to its SPAC transaction. The company also reported revenue of just under $837,000 for the quarter ended June 30, down 30% from the same period a year ago.
Alexandra Canal She is a senior reporter at Yahoo Finance. Follow her on X Translator, LinkedIn, Please email me at alexandra.canal@yahoofinance.com.
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