Trump Media Stock Plummets to Record Low as Lock-Up Period Expires, Raising Questions About Former President’s Stake
Staff Editor
2 min read
Trump Media Shares Hit All-Time Low as Lock-Up Period Ends
Shares of Trump Media & Technology Group (TMTG) plummeted to their lowest level ever on Friday, coinciding with the expiration of a lock-up period that now allows former President Donald Trump, the company’s largest shareholder, to sell his stake.
The stock tumbled almost 8% to close at $13.55, valuing the company at less than $3 billion. Trump, who owns more than half of TMTG, holds nearly 115 million shares, worth approximately $1.6 billion based on Friday’s closing price.
TMTG, which began trading publicly in March, has experienced significant volatility since its debut. The company’s stock movements have often been influenced by news related to Trump, with shares jumping nearly 12% after he announced he wouldn’t sell his stake when the lock-up period lifted.
However, the stock has also seen dramatic dips, including a more than 10% decline following a debate between Trump and Vice President Kamala Harris. Conversely, shares climbed over 31% following reports of an assassination attempt on the former president.
Despite these fluctuations, TMTG’s current valuation is substantially lower than its peak. Shares hit a high of $79.38 when the company debuted on the Nasdaq in March, making Friday’s closing price an 83% decline from that zenith.
The company, based in Sarasota, Florida, operates Truth Social, a platform created after Trump was banned from Twitter and Facebook following the January 6, 2021, Capitol riot. However, TMTG has been struggling financially, reporting a loss of nearly $58.2 million last year while generating only $4.1 million in revenue, according to regulatory filings.
As the lock-up period ends, market observers note that any large-scale selling by Trump or other insiders could potentially trigger a broader sell-off, adding further pressure to the already declining stock price.
