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months long Trump Media Shares continued to slide Wednesday as the former president took a majority stake in the company Donald Trump Dropped below $20 for the first time since listing truth society The manufacturer launched it in March this year.
As of 12:45 p.m. ET, shares DJT It’s down more than 75% from its intraday high on March 26, when the company debuted Nasdaq stock exchange.
Trump Media Stock Price
Trump Media has also lost more than half its market value since its stock surged on July 15, the first trading day after the Republican election. presidential candidate narrowly survived assassination attempt At a campaign rally in Pennsylvania.
A Trump media spokesman did not immediately respond to CNBC’s request for comment on the stock’s latest plunge.
Trump owns nearly 59% of Trump Media’s stock. Even after losing much of its value, Trump’s stake is still worth more than $2.2 billion at Wednesday’s stock prices – more than half its paper value net worthAccording to Forbes.
Trump and other company executives and insiders Subject to lock-up agreement So far, this has prevented them from cashing in on their shares.
But the lock-up period will expire as soon as September 20, at which time Trump may choose to start selling his shares.
Trump has given no indication that he plans to fulfill it once he is able. But there is speculation that he might do so, especially with the latest reports from the Trump media that earnings report Showing it lost millions of dollars and generated little revenue.
If he does sell – or even if he seems possible – Investors may be losing confidence in Trump Media, something the company’s own regulatory filings acknowledge.
similar to others meme stocksinvesting in Trump media has been seen as a way for Trump’s supporters to support him and bet on his chances of defeating the Democratic vice president Kamala Harris in the presidential election.
But the company noted that its fledgling social media platform, Truth Social, depends at least in part on Trump’s enduring popularity and reputation. Trump, who owns the most popular Truth Social account, has recently begun posting more content on his previous messaging apps of choice, X and TikTok.
The stock’s recent decline also coincides with changes in Trump’s political and legal environment. Trump’s chances of winning the election appear to have narrowed after being elected president Joe Biden Withdrew his re-election bid and endorsed Harris as his successor.
Trump Media also announced last month that it had reached an agreement with investment firm Yorkville Advisors that could allow the company to issue up to $2.5 billion in stock to Yorkville.
Trump Media CEO Devin Nunes said in a July 3 press release that the deal would “ensure access to additional capital, as necessary, to pursue significant strategic opportunities as we look to acquire assets and technology in the Patriot economy.” to expand our investment portfolio.”
The company noted in a separate statement Supervision filing“The sale and issuance of shares to Yorkville will result in dilution to our existing stockholders, and the sale of shares acquired by Yorkville, or the belief that such sales may occur, could cause the price of our common stock to decline.”
