Former President Donald Trump is set to potentially sell shares of Truth Social's parent company, Trump Media & Technology Group Corp., as a lockup provision is set to end next week. The company's shares have experienced a significant drop of over 14% before the market opening on Wednesday, following Trump's recent debate with Vice President Kamala Harris and an endorsement of Harris by singer Taylor Swift.
Trump, who owns nearly 115 million shares of the company, could start selling his shares on Sept. 19, with an estimated value of around $2 billion based on the latest closing price. Despite the potential for a substantial payout, the current stock value is notably lower than its peak when Truth Social debuted on the Nasdaq in March at $79.38.
Trump Media operates Truth Social, a social media platform created by Trump after being banned from major platforms like Twitter and Facebook in the aftermath of the Jan. 6, 2021, Capitol riot. The company, headquartered in Sarasota, Florida, has faced financial challenges, reporting a loss of nearly $58.2 million last year against revenue of $4.1 million, as per regulatory filings.
Market analysts have labeled shares of Trump Media as a meme stock, a term used for stocks that experience significant price fluctuations driven by online hype rather than fundamental analysis. The stock has been subject to erratic trading patterns, largely influenced by individual investors perceived as less sophisticated than professional day traders.
