Trump Media shares plunged on Friday after company insiders, including former President Donald Trump, got the green light to sell shares.
Shares of the owner of Trump’s Truth Social fell as much as 8% to $13.50 on Friday morning before recovering barely. At the time of publication, shares were trading nearly 4.5% lower at $14.05.
The stock’s weak performance comes as major indexes pared gains after soaring on Thursday following the Fed’s rate cut announcement. Both the S&P 500 and Dow hit all-time highs on Thursday following the announcement. Both indexes lost lower than 1% on Friday, together with the Nasdaq.
It’s unclear whether insiders have sold their shares, but Trump particularly may gain advantage greatly from a sale. The former president owns about 57 percent of the corporate, or slightly below 115 million shares. Trump’s stake was price about $1.6 billion as of Friday, and a sale could give him an enormous windfall.
Despite this unique opportunity, Trump announced at a press conference last week that he wouldn’t sell his shares. This statement caused the share price to shoot up by 27 percent.
Trump Media went public in March through a special purpose acquisition company (SPAC), and since then its stock price has fluctuated wildly. Its price often rises and falls based on Trump’s political success. Shares soared after Trump’s first debate with President Joe Biden, but have lost greater than half their value since Vice President Kamala Harris took over because the Democratic presidential nominee.
In addition, the corporate’s weak financial position makes experts doubt whether the share price should really be so high. The company only generated revenue of $1.6 million in the primary half of 2024 and made a lack of greater than $300 million in the identical period.
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