Trump Media's stock jumps 30% after Donald Trump confirms he won’t sell his shares in the company behind Truth Social.
Donald Trump’s decision to hold onto his Trump Media shares sparks a stock surge after weeks of steady declines. Image Courtesy: Congress Library, UnsplashRancho Palos Verdes, California, USA - September 14, 2024:
Republican presidential candidate Donald Trump announced on Friday that he will not sell his shares in Trump Media & Technology Group, the company behind his Truth Social platform. This statement came as restrictions on selling were set to be lifted, sparking a surge in the company’s stock price, which rose by as much as 30% before closing with a 12% gain for the day.
Trump, who owns about 57% of Trump Media, addressed concerns during an interview with Reuters, stating, "No, I’m not selling. I’m not leaving. I love it. I think it’s great." The stock rally follows weeks of declines that were accelerated after Trump's televised debate with Vice President Kamala Harris, his Democratic rival for the 2024 election.
Trump Media’s stock had faced pressure as key dates approached, allowing Trump and other insiders to sell shares for the first time since the company's stock market listing in March. Market analysts had anticipated that the lifting of the selling restrictions could result in a selloff of shares.
Following Trump’s announcement, the company’s stock closed at $17.97 on Friday, making Trump’s stake in the company worth around $2 billion. Forbes currently values Trump’s total wealth at $3.7 billion.
Trump Media has struggled with profitability, reporting a loss of $869,900 in the quarter ending June 30. Despite the company's challenges, the stock remains popular among retail traders as a speculative bet on Trump’s potential return to the White House. Analysts have noted that the company's $3.6 billion market valuation appears detached from its day-to-day business operations.
The upcoming presidential election on November 5 and the lock-up expiry of Trump Media’s shares have been closely monitored by investors. If the stock price holds above $12 for 20 trading days starting August 22, Trump will be free to sell his shares beginning on September 20. Otherwise, the restriction lifts on September 26.
Meanwhile, legal pressures eased for Trump this month after a New York judge delayed his sentencing in the hush money criminal case to November 12, following the U.S. Supreme Court’s decision on presidential immunity.
The stock trading day was briefly halted twice due to high volatility following Trump's comments, with Trump later posting on Truth Social criticizing the Nasdaq exchange and suggesting he might move the listing to the New York Stock Exchange.