Shares of Trump Media & Technology fell more than 10% Wednesday following last night’s debate between Donald Trump and Vice President Kamala Harris.
The former president can start selling shares of Truth Social's parent company next week starting on Sept. 19 when a lockup provision ends, if he chooses to do so. That's because the lockup provision prevented company insiders from selling newly issued shares for six months.
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Trump owns nearly 115 million shares of the company, according to a recent filing with the Securities and Exchange Commission. Based on Tuesday's closing price of $18.04, Trump's shares are worth approximately $2 billion.
The question remains if Trump will decide to sell any of his shares. Even though he’d be certain to receive a sizeable payout, the stock is now worth considerably less than it was valued at several months ago. When Truth Social & Technology Group Corp. made its debut on the Nasdaq in March, it hit a high of $79.38.
The stock closed Wednesday down $1.95 at $16.68 but above the day's low of $15.30. The decline also came after Taylor Swift endorsed Harris for president shortly after the debate ended.
Trump Media runs the social media platform Truth Social, which Trump created after he was banned from Twitter and Facebook following the Jan. 6, 2021, Capitol riot. Based in Sarasota, Florida, the company has been losing money and struggling to raise revenue. It lost nearly $58.2 million last year while generating only $4.1 million in revenue, according to regulatory filings.
Shares of Trump Media have been considered a meme stock by some market experts, which is a nickname given to stocks that get caught up in buzz online and shoot way beyond what traditional analysis says they’re worth. The stock has fluctuated for the past several months, with trading largely driven by individual investors who are typically considered less sophisticated than day traders.