Trump Media Shares Plummet as Insider Selling Restrictions Expire

Shares of Trump Media tumbled nearly 8% on Friday, closing at $13.55, the lowest point since the company’s stock-market debut. This marked the fifth consecutive day of losses, leaving the company’s market capitalization at just $2.7 billion. The steep decline followed the expiration of insider lock-up restrictions, allowing large shareholders to sell their stakes for the first time since the company went public.

Trump Media, owned 57% by former President Donald Trump, operates the Truth Social app and has faced mounting financial challenges. With $300 million worth of shares traded on Friday, the session saw the highest turnover in a week. Despite the unlocked shares, Trump stated he would not sell his holdings, currently valued at $1.5 billion. This has drawn attention to other major stakeholders who now have the option to sell.

Shareholders such as United Atlantic Ventures and Patrick Orlando, who sponsored the company’s merger, collectively own 11% of the shares. With only one-third of the company’s stock available for trading, any significant sale could drive the stock price lower. Additionally, the increase in available shares could lead to more short selling, further impacting the stock’s value.

The company’s early stock surge saw its value climb to nearly $10 billion after its debut, fueled by enthusiasm from retail investors and Trump supporters. However, its valuation has drastically declined as financial difficulties have persisted. Last year, Trump Media reported a loss of $58.2 million, while generating only $4.1 million in revenue.

Despite initial optimism, Trump Media continues to struggle. Political events, such as Trump’s ongoing campaign, have also impacted stock price volatility. Investors remain cautious, with uncertainty surrounding potential insider sales and the company’s path to profitability.