Trump Media’s stock faced a sharp decline, closing at $37.17, marking an 8.43% drop and pushing its market capitalization slightly above $5 billion. This downturn followed a significant 12% decrease on the previous Friday, marking a challenging start to the trading week on the Nasdaq exchange.
Initially, the company experienced a surge with a high price nearing $80 just two weeks after its public debut, driven by its ownership of the Truth Social app associated with former President Donald Trump.
Donald Trump (Credits: The Wall Street Journal)
However, the stock’s value has steadily declined since then, with Monday seeing fluctuations where it dropped by 10% or more at times. Despite its initial market cap reaching around $8.4 billion upon trading commencement in late March, it now stands at $5.08 billion. Trump himself owns a substantial portion of the company’s stock, totaling 78.75 million shares valued at approximately $2.93 billion.
Trump’s ability to sell his shares is currently restricted for six months following a merger agreement that took the company public. However, the board holds the authority to lift this lock-up provision. Additionally, Trump stands to gain an additional 36 million shares of DJT if the stock meets specific price benchmarks over the next three years, adding further complexity to the situation.
