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Trump Media Shares of the company behind Truth Social were trading higher on Tuesday morning as they looked to break out of a downward spiral, just as company insiders including top shareholder Donald Trump got the go-ahead to start selling stock.
DJT shares rose 7% in fierce trading shortly after the market opened. The stock was up about 2% as of 11 a.m. ET.
After six consecutive sessions of losses, Trump Media shares fell more than 32%.
Trump Media (DJT) stock price
The dive is just the latest negative fallout in a month-long slump for the company, which went public in late March after completing a merger with a special purpose acquisition company.
Shares of Trump Media Co. have fallen more than 84% since debuting on Nasdaq and surging to an intraday peak of $79.38 per share.
On Monday, the stock fell to its lowest level since October 2021, when news first broke of a planned merger between Trump Media and SPAC (Digital World Acquisition Corp.). public.
Trump currently owns nearly 57% of the company’s outstanding shares. Although the value of his holdings has fallen by billions in recent months, it was still worth nearly $1.5 billion on Tuesday morning.
The Republican presidential candidate and other early investors in the company are prohibited from selling their shares until a lockup agreement expires, which they did on Thursday.
The expiration of the lockup period has fueled speculation about whether early investors will seek to sell shares in the company, whose sole product, Truth Social, has generated little revenue in recent quarters.
Trump has vowed not to sell his shares.
But Trump Media warned that other early investors were planning to cash out as soon as the lockup expired.
It was unclear Tuesday morning whether any previously locked entities had attempted to sell since Thursday. But in most cases, these sales trigger SEC disclosure requirements.
This is developing news. Please check back for updates.
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