Trump Media Stock Plummets to Record Low as Major Shareholders Gain Selling Power

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, marking the first trading day that former President Donald Trump, the company’s largest shareholder, was eligible to sell his stake. The stock fell nearly 8%, closing at $13.55, valuing the company at less than $3 billion.

Trump, who owns more than half of TMTG with nearly 115 million shares, saw his holdings drop to approximately $1.6 billion on paper based on Friday’s share price. This decline comes as standard lock-up agreements, which had previously prevented Trump and other insiders from selling their stakes, expired.

TMTG, which began trading publicly in March, has experienced significant volatility since its debut. The stock’s performance has often been influenced by news related to Trump. Just one week ago, shares surged nearly 12% after Trump announced he wouldn’t sell shares when the lock-up period ended. However, the stock subsequently dipped more than 10% following a debate between Trump and Vice President Kamala Harris.

The company’s valuation has decreased substantially since its Nasdaq debut when shares hit a high of $79.38. Friday’s closing price represents an 83% decline from that peak. TMTG, based in Sarasota, Florida, has been struggling financially, reporting a loss of nearly $58.2 million last year while generating only $4.1 million in revenue.

TMTG’s flagship product, Truth Social, was created after Trump was banned from Twitter and Facebook following the January 6, 2021, Capitol riot. As the company faces ongoing financial challenges, investors will be closely watching for any signs of improvement in its performance and user growth.