Trump Media & Technology Group (DJT) stock fell more than 10% on Monday, trading at its lowest level since the social media company went public in March. The move comes after DJT’s lock-up period officially ended last week.
Interested parties, including former President Donald Trump, were subject to a six-month lock-up period before they could sell or transfer their shares. The lockup period expired last Thursday, but President Trump said he would not sell his holdings.
“I have no intention of selling,” the former president said at a press conference before the end of the lock-up period. “I love it. I use it as a way to get my words across.”
As detailed by Yahoo Finance’s Ben Werschkul, the purpose of the lockup period is to protect the interests of newly public companies and allow founders to maintain stability before cashing out.
“If I sell, we won’t be in the same situation, and I understand that,” Trump said at the time, adding that he was aware his stake had been “reduced” in recent months.
The stock has fallen about 20% since Thursday and remains far from its all-time high of just over $79 a share.
Trump maintains a roughly 60% interest in DJT. At current levels, Trump Media has a market capitalization of about $2.5 billion, and the former president’s stock holdings are worth about $1.5 billion. Shortly after the company’s public debut, Trump’s stake was valued at just over $4.5 billion.
Trump Media listed on the Nasdaq in late March after merging with special acquisition vehicle Digital World Acquisition Corporation. However, the stock has had a volatile run since then, and this movement is usually associated with volatile conditions, causing the stock to oscillate between highs and lows. news cycle.
In June, stocks soared (and then fell) after current commander-in-chief Joe Biden stumbled in the first presidential debate of 2024 with Trump. Biden withdrew from the presidential race a month later.
Republican presidential candidate former President Donald Trump pauses during a speech during a campaign event at Nassau Coliseum in Uniondale, New York, September 18, 2024. (AP Photo/Alex Brandon) (ASSOCIATED PRESS)
Stocks have remained under pressure since Biden’s announcement, with the latest polls showing Democratic presidential candidate Vice President Kamala Harris ahead of Trump.
In May, Trump was found guilty on all 34 counts of falsifying business records to influence the 2016 presidential election, and his stock price fell 5% the day after his conviction. His sentencing was recently postponed until November 26th.
The company’s stock price has fallen about 65% since going public.
Trump founded Truth Social after being banned from major social media apps such as Facebook (META) and Twitter (the platform now known as X) in the wake of the January 6, 2021 Capitol riot. . Trump has since returned to those platforms. He officially returned to X in mid-August after a hiatus of about a year.
story continues
But as Truth Social seeks to challenge the social media establishment, its fundamentals have long been in question.
Last month, DJT released its second-quarter results, revealing a net loss of $16.4 million, about half of which was related to costs related to the company’s SPAC transaction. The company also reported revenue for the quarter that ended June 30 of just under $837,000, down 30% from a year earlier.
StockStory aims to help individual investors beat the market.
Alexandra Canal is a senior reporter at Yahoo Finance. Follow her on X @allie_canalEmail LinkedIn, alexandra.canal@yahoofinance.com.
Click here for the latest stock market news and in-depth analysis, including events that move stocks
Read the latest finance and business news from Yahoo Finance.
