Shares of Trump Media & Technology fell 17% on Wednesday morning following last night’s debate between Donald Trump and Vice President Kamala Harris.
The former president can begin selling shares of Truth Social’s parent company next week, starting Sept. 19 when a lockup provision expires, if he chooses. That’s because the lockup provision prohibited company insiders from selling newly issued shares for six months.
Trump owns nearly 115 million shares of the company, according to a recent filing with the Securities and Exchange Commission. Based on Tuesday’s closing price of $18.04, Trump’s shares are worth about $2 billion.
The question remains whether Trump will decide to sell some of his shares. While he would certainly get a hefty payout, the stock is worth considerably less now than it was just a few months ago. When Truth Social & Technology Group Corp. debuted on the Nasdaq in March, it hit a high of $79.38.
In morning trading, shares traded hands for $15.45 each. The stock move also comes after Taylor Swift endorsed Harris for president shortly after the end of the debate.
Trump Media runs the social media platform Truth Social, which Trump created after he was banned from Twitter and Facebook following the Jan. 6, 2021, Capitol riots. The company, based in Sarasota, Florida, is losing money and struggling to generate revenue. It lost nearly $58.2 million last year while generating just $4.1 million in revenue, according to regulatory filings.
Shares of Trump Media are considered by some market experts to be a meme stock, a nickname given to stocks that capture online attention and become worth much more than traditional analysis suggests. The stock has fluctuated in recent months, with trading largely driven by individual investors who are generally considered less sophisticated than day traders.
