Shares of Trump Media, commonly known as TMTG, fell nearly 7% to $13.73, valuing the company at less than $3 billion. Trump owns more than half of the company.
Trump and others at the company have been unable to profit from the highly volatile stock because of standard lock-up agreements that prevent large shareholders from selling stakes for a set period after a company goes public. TMTG went public in March.
Trump owns nearly 115 million shares of the company, according to documents filed with the Securities and Exchange Commission. Based on TMTG’s stock price early Friday, Trump’s holdings are worth, at least on paper, about $1.6 billion. Large shareholders typically don’t want to even try to sell large amounts of their stock because it could risk a broader sale.
Since going public, Trump Media’s stock has fluctuated wildly, often depending on news related to Trump, the Republican presidential candidate.
A week ago, the company’s stock rose nearly 12% after Trump said he would not sell shares when the blackout period was lifted. The stock fell more than 10% after the debate earlier this month between Trump and the Democrats’ nominee, Vice President Kamala HarrisIn mid-July, shares rose more than 31% on the first day of trading following the first assassination attempt on Trump. Trump Media & Technology Group Corp. is now worth considerably less than it was several months ago. When the company made its debut on the Nasdaq in March, shares peaked at $79.38. Truth Social was born after being banned from Twitter and Facebook following the Capitol riot on January 6, 2021. Based in Sarasota, Florida, Trump Media has been losing money and is struggling to boost revenue. It lost nearly $58.2 million last year and generated just $4.1 million in revenue, according to regulatory filings.
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