Shares of\u00a0Trump Media\u00a0sank Monday to their\u00a0lowest price\u00a0since 2021, days after majority owner\u00a0Donald Trump\u00a0and other company insiders got the green light to start selling their stakes in the\u00a0Truth Social\u00a0operator.<\/p>\n
The stock, which appears as\u00a0DJT\u00a0on the\u00a0Nasdaq, closed more than 10% lower in a frenzied trading session, settling at $12.15 per share and notching the company\u2019s sixth straight day of declines.<\/p>\n
Trump Media\u2019s share price has fallen nearly 85% since the company surged in its public trading debut in late March.<\/p>\n
Monday\u2019s decline left the stock at its lowest level since before October 2021, when it was revealed that the blank-check firm\u00a0Digital World Acquisition Corp.\u00a0was planning to merge with then-private Trump Media.<\/p>\n
News of that deal sent shares of DWAC soaring more than 350%. The stock declined in the intervening years, before surging again in the early 2024 in anticipation of the completion of the merger with Trump Media.<\/p>\n
The company\u2019s market capitalization, which crossed\u00a0$10 billion\u00a0in March, has now shrunk below $2.5 billion. Trump owns nearly 57% of the company\u2019s outstanding shares, a stake that is still worth nearly $1.4 billion.<\/p>\n
Trump and other company insiders were bound by lockup agreements that barred them from selling their shares in the initial months after Trump Media went public.<\/p>\n
Those restrictions expired at the closing bell Thursday.<\/p>\n
Trading volume accelerated significantly as the lockup lifted. More than 14 million shares changed hands on Thursday and nearly 22 million were exchanged Friday, far exceeding the 30-day average volume of about 8.3 million shares.<\/p>\n
Traders swapped more than 18.3 million shares on Monday.<\/p>\n
Asked for comment about the stock\u2019s recent movement, a Trump Media spokesperson shared a statement defending the company\u2019s business.<\/p>\n
\u201cTrump Media ended last quarter with $344 million in cash and cash equivalents and zero debt while launching an in-app streaming platform on our custom-built content delivery network,\u201d the statement read. \u201cWith further innovations planned soon, TMTG is optimistic about our growth strategy.\u201d<\/p>\n
Trump, a main draw for Truth Social users and many of the company\u2019s retail investors, said earlier in September that he will not sell his stake. The stock price briefly shot up after his remarks.<\/p>\n
Other early investors have made no such promises. They include DWAC sponsor ARC Global and United Atlantic Ventures, an entity controlled by two former contestants on Trump\u2019s reality show \u201cThe Apprentice.\u201d<\/p>\n
ARC and UAV owned nearly 11% of outstanding DJT shares, Trump Media said in a regulatory filing in early September. But ARC\u2019s stake may have grown after a Delaware judge ruled on Sept. 16 that\u00a0Trump Media breached\u00a0an agreement with the sponsor and owes it more stock.<\/p>\n<\/p>\n
Shares of\u00a0Trump Media\u00a0sank Monday to their\u00a0lowest price\u00a0since 2021, days after majority owner\u00a0Donald Trump\u00a0and other company insiders got the green light to start selling their stakes in the\u00a0Truth Social\u00a0operator. The stock, which appears as\u00a0DJT\u00a0on the\u00a0Nasdaq, closed more than 10% lower in a frenzied trading session, settling at $12.15 per share and notching the company\u2019s sixth straight […]<\/p>\n","protected":false},"author":0,"featured_media":10040,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"class_list":["post-10039","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business"],"_links":{"self":[{"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/posts\/10039","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/comments?post=10039"}],"version-history":[{"count":0,"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/posts\/10039\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/media\/10040"}],"wp:attachment":[{"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/media?parent=10039"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/categories?post=10039"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/tags?post=10039"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}