Trump Media shares/ Trump stock surge/ Trump Media valuation/ Newslooks/ NEW YORK/ Shares of Trump Media & Technology Group surged after Donald Trump announced he would not sell his shares when the lockup provision expires. Despite the company’s financial struggles, Trump’s commitment to holding his 115 million shares boosted investor confidence. The stock closed up 11.8% on Friday.
Trump Media Stock Rally: Quick Looks
- Trump’s Statement: Trump declared he would not sell his shares, stating he doesn’t need the money.
- Stock Surge: Trump Media shares jumped 11.8% by the end of Friday, after initially rising 29%.
- Share Valuation: Trump’s 115 million shares are currently worth around $1.85 billion, based on Thursday’s closing price.
- Lockup Expiry: Trump can begin selling shares on Sept. 19, but he indicated he has no plans to do so.
- Company Struggles: Despite the rally, Trump Media has been financially struggling, losing $58.2 million in 2023 while generating only $4.1 million in revenue.
Trump Media Stock Rallies After Trump Refuses to Sell Shares
Deep Look
Trump Media & Technology Group Corp. saw a notable surge in its stock price on Friday after former President Donald Trump reassured investors that he has no plans to sell his shares when the company’s lockup provision expires on September 19. Speaking to reporters at his golf club in Los Angeles, Trump confidently stated, “I don’t wanna sell my shares. I don’t need money,” signaling his continued commitment to the social media venture he founded.
Trump’s significant ownership stake in the company, which includes nearly 115 million shares, has been a focal point for investors. According to the Securities and Exchange Commission (SEC), those shares were valued at roughly $1.85 billion as of Thursday’s closing price of $16.08 per share. This news spurred a strong rally in the company’s stock, which initially jumped 29% before ending the day up by 11.8%.
The former president’s decision to hold onto his shares was well-received by the market, particularly given the company’s recent financial woes. Trump Media, which operates Truth Social, was launched as an alternative social media platform after Trump was banned from mainstream platforms like Twitter and Facebook following the events of January 6, 2021. While the platform gained significant attention, Trump Media has struggled to generate substantial revenue, raising concerns about its long-term viability.
According to recent regulatory filings, the company lost approximately $58.2 million in 2023, while only bringing in $4.1 million in revenue. Despite these challenges, Trump expressed confidence in the platform, stating, “For me, it is a great voice,” adding that he uses Truth Social to communicate directly with his followers.
The lockup provision, which is set to expire on September 19, was initially put in place to prevent company insiders from selling newly issued shares for six months following the company’s public debut on the Nasdaq. Since going public in March, Trump Media stock has experienced significant volatility. When the company first began trading, its stock soared to as high as $79.38 per share. However, it has since declined considerably, and the current price reflects a steep drop from its early peak.
Despite the stock’s decline from its initial highs, Trump’s refusal to sell his shares appears to have restored some investor confidence. His reassurance comes at a critical time for the company, which has been struggling to sustain its valuation amid mounting financial difficulties. The market reaction to his comments suggests that many investors are still betting on the potential success of Trump Media and Truth Social, even as the company navigates turbulent financial waters.
On Wednesday, shares of Trump Media took a hit, falling more than 10% after the debate between Trump and Vice President Kamala Harris. The debate, part of the ongoing 2024 presidential election campaign, saw Harris gaining momentum, putting additional pressure on Trump both politically and financially. However, Friday’s rally indicates that Trump’s continued association with the company, and his decision to hold onto his shares, remains a source of optimism for investors.
While Trump Media’s future remains uncertain, the former president’s commitment to Truth Social suggests he views the platform as an important tool for his communication strategy, particularly as he continues to campaign for the 2024 election. The social media platform has been a key outlet for Trump to share his views directly with his base, bypassing traditional media outlets.
The uptick in the company’s stock following Trump’s comments highlights the influential role he continues to play in driving market sentiment regarding his business ventures. As the lockup provision expiration date approaches, all eyes will be on whether Trump maintains his position or if any shifts in strategy occur that could further impact the company’s financial standing.
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