Trump Media's Stock Skyrockets As Former President Denies Sale Of Shares
In a surprising turn of events, former President Donald Trump announced on Friday that he is not planning to sell his shares in Truth Social’s parent company, Trump Media & Technology Group. This statement came as a response to a reporter’s query during a press conference and led to a dramatic surge in the company’s stock price.
Trump’s denial of any intention to sell his shares had an immediate impact on the market. The company’s stock price soared by 25% shortly after his announcement, prompting a trading halt due to volatility. By late afternoon, Trump Media’s shares were still up by 19%, reflecting investor relief and renewed confidence.
“No, I’m not selling. No, I love it,” Trump affirmed, addressing concerns about his potential departure from the company. His remarks seemed to counter fears that his exit would negatively impact the stock.
The lock-up period, during which insiders including Trump are restricted from selling their shares, is set to expire on September 19. If the share price remains above $12 at that time, Trump and other insiders could begin selling their stakes. However, experts warn that offloading a significant portion of shares could lead to a drastic drop in stock value.
Despite Trump’s assurance, it remains uncertain whether he is considering selling even a fraction of his shares. Currently, Trump holds a dominant 57% stake in Trump Media, which amounts to 114.75 million shares valued at approximately $1.8 billion based on Thursday’s closing price.
The stock’s value has faced significant declines in recent months, exacerbated by concerns over the expiring lock-up restrictions and political uncertainties. The share price hit record lows earlier this week, partly influenced by Trump’s underwhelming performance in a recent debate, which stirred investor anxiety.
Trump’s statements have provided a temporary boost to the company’s stock, but the future remains uncertain as market dynamics continue to evolve.
(Includes inputs from online sources)
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