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Trump Media in stock Rose Wednesday for the second day in a row, as the company’s majority stake was Donald Trump Hoping to recover losses from punitive measures sell off The craze heats up after insider releases locking Expired.
DJT Shortly after the opening bell, the stock jumped 7% and was trading above $13.70. Trump Media shares closed up more than 5% on Tuesday.
The positive turn by the owner of Truth Social comes after a months-long stock price plunge that wiped billions of dollars off the company’s market value.
Trump Media (DJT) stock price
Shares of Trump Media closed Monday at their lowest level in about six months since the company went public after merging with a blank-check company.
Some experts still believe Trump Media, which currently has a market capitalization of more than $2.5 billion, is significantly overvalued.
They argue that retail traders are trading the stock not based on the fundamentals of its business — the company had revenue of just $837,000 in its latest fiscal quarter — but as a way to bet on the political fortunes of the Republican presidential candidate.
Trump’s media surged briefly in mid-July after Trump narrowly escaped assassination at a campaign rally and appeared to extend his lead over the president Joe Biden. But the stock price began to decline soon after, around the time of V.P. Kamala Harris displaced Biden and quickly narrowed Trump’s lead in the polls.
From July 15 to Monday, Trump Media’s stock price fell 70%.
Trump Media’s slide continues ahead of the expiration of a lock-up agreement that bars Trump and other company insiders from selling stock.
Those lock-ups expired Thursday afternoon. That sparked a flurry of trading, with Trump Media stock trading at significantly higher volume than the company’s 30-day average, according to FactSet.
As of Wednesday morning, Trump owned 114,750,000 shares, a nearly 57% stake worth approximately $1.5 billion. If Trump cashes out of the company that bears his name, it could shake investor confidence and potentially spark another selloff.
But days before the lockdown was lifted, Trump announced he had no plans to sell stock.
So far, no other Trump media insiders have reported the transactions to the SEC. required In most cases.
Trump Media said in regulatory filings that its sole product, “Truth Social,” depends on the former president’s popularity and continued use of the social media platform.
This is developing news. Please check back for updates.
