Trump Refuses to Sell Shares, Truth Social Stock Price Rises

Trump Media & Technology Group, the parent⁢ company of America’s “Truth Social” platform, is set to end its⁣ lockdown ⁤on September‌ 19. ‌In ​a recent statement, Trump⁤ confirmed that he would not be‍ selling his holdings after the lockdown ​ends, causing Trump media stocks to rise sharply.

“A​ lot of people ⁣think ‌I’m going to sell my shares,” Trump told reporters at the Los Angeles Golf Club on Friday. “But I don’t want to sell my shares. I don’t need ​to‍ sell my shares. There’s no need for me‌ to sell my⁢ shares.​ I use it as a channel for my voice,” Trump said of ⁤”Truth Social.” “It’s a really good platform for me to speak out.”

The⁢ stock⁤ lock-up provision prohibits company insiders from selling newly issued shares for six months after they go public in March. Trump holds nearly 115 million shares, valued at approximately $1.85 billion based on Thursday’s closing price ⁤of $16.08.

Although Trump stands​ to gain significantly from selling his stake, the media stock is now worth far less than it was valued at just a few months ago.⁤ When the company debuted on Nasdaq in March‍ of this year, its stock price soared to ‌a peak⁢ of $79.38.

After Trump and Democratic ‌presidential candidate Kamala Harris‌ ended the first debate, Trump media stocks fell sharply by more than 10% on Wednesday. However, on Friday, due to ​Trump’s support, the stock​ price rose 29% at one point and⁢ finally closed up 11.8%.

Despite this, its stock price was still down more than 75% at the opening of trading on Friday compared to before its listing in March. The Sarasota, Florida, social media company⁢ regularly loses money, according to regulatory filings, ‍with a loss of nearly $58.2 million last year on revenue of just $4.1 million.

Many experts⁣ consider Trump Media Company a “meme ⁤stock,” believing that investors buy the stock primarily to‍ bet on Trump’s political prospects, while the company’s fundamentals are less affected by stock price fluctuations. Trump Media has said the⁣ company’s business depends in part on Trump’s popularity. Analysts pointed out⁣ that Trump’s performance in the general⁤ election will ‍affect the trend ⁣of Trump Media’s stock prices.

Trump created Truth Social after being banned from Twitter and Facebook following the congressional event on ‌January 6, 2021.

Key Points:

• Trump Media & Technology Group’s lockdown is set to end on September‍ 19.
• Trump confirmed he would not sell‌ his shares after the lockdown⁤ ends.
• Trump holds nearly 115 ⁣million shares, valued at approximately $1.85 ‌billion.
• The company’s stock price rose 29% at one point on Friday and closed up⁣ 11.8%.
• Trump Media Company is considered a “meme stock” by many experts.