Shares of Trump Media & Technology Group fell to their lowest level at the open on Friday, the first day of trading in which its largest shareholder, former President Donald Trump, is free to sell his stake in the company Behind the Truth Social platform.
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 U.S. Securities and Exchange Commission. Based on TMTG's stock price early Friday, Trump's shares are worth, at least on paper, about $1.6 billion. Large shareholders generally don't want to even try to sell large amounts of their stock because they could risk a sell-off.
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 shares rose nearly 12% after Trump said he would not sell stock when the blackout period was lifted. The stock fell more than 10% after the debate Earlier this month, Trump and Democratic nominee Vice President Kamala Harris clashed. In mid-July, stocks rose more than 31% on the first day of trading following the first assassination attempt against Trump.
Trump Media & Technology Group Corp. is now is worth considerably less More than several months ago, when the company made its debut On the Nasdaq in March, the shares hit a high of $79.38.
Social Truth Trump Media was born after being banned from Twitter and Facebook following the Capitol riots on January 6, 2021. Based in Sarasota, Florida, Trump Media has been losing money and struggling to raise revenue. lost almost $58.2 million last year while generating just $4.1 million in revenue, according to regulatory filings.
