Trump Media shares rise a day after sell-off | Wilnesh News

Trump Media The stock rose for a second straight day on Wednesday as the company, majority-owned by Donald Trump, looks to recoup losses from an intensifying sell-off following the expiration of an insider lockup.

DJT shares rose 7% shortly after the opening bell, trading above $13.70. Trump Media shares closed up more than 5% on Tuesday.

Truth Social’s owner has made a positive about-face after a months-long share price slump that wiped billions of dollars off the company’s market value.

Shares of Trump Media closed Monday at their lowest level in about six months since the company went public after merging with a blank-check company.

Some experts still believe Trump Media, which currently has a market capitalization of more than $2.5 billion, is significantly overvalued.

They argue that retail traders are trading the stock not based on the fundamentals of its business — the company had revenue of just $837,000 in its latest fiscal quarter — but as a way to bet on the political fortunes of the Republican presidential candidate.

Trump’s media surged briefly in mid-July after he narrowly escaped assassination at a campaign rally and appeared to expand his lead over President Joe Biden. But shares began to fall soon after, when Vice President Kamala Harris replaced Biden and quickly cut into Trump’s lead in the polls.

From July 15 to Monday, Trump Media’s stock price fell 70%.

Trump Media’s slide continues ahead of the expiration of a lock-up agreement that bars Trump and other company insiders from selling stock.

Those lock-ups expired Thursday afternoon. That sparked a flurry of trading, with Trump Media stock trading at significantly higher volume than the company’s 30-day average, according to FactSet.

As of Wednesday morning, Trump owned 114,750,000 shares, a nearly 57% stake worth approximately $1.5 billion. If Trump cashes out of the company that bears his name, it could shake investor confidence and potentially trigger another selloff.

But days before the lockdown was lifted, Trump announced he had no plans to sell stock.

So far, no other Trump media insiders have reported the transactions to the SEC. required In most cases.

Trump Media said in regulatory filings that its sole product, “Truth Social,” depends on the former president’s popularity and continued use of the social media platform.

This is developing news. Please check back for updates.