Trump Media Shares Fall to New Low Following Expiration of Insider Selling Restrictions, Reports Reuters

Shares of Donald Trump’s media company experienced a 10% drop on Monday, reaching a new low as recent declines continued following the expiration of insider selling restrictions. The Trump Media & Technology Group, in which the former president holds a 57% stake, has now seen six consecutive days of falling stock prices, bringing its market capitalization down to $2.4 billion.

The company’s shares, which support the Truth Social app, closed at $12.15, marking their lowest point since the company’s stock-market debut in March. Since the lifting of insider selling restrictions last Thursday, the stock has declined by 17%.

Following its initial public offering, Trump Media’s valuation soared to nearly $10 billion, largely driven by enthusiasm from Trump supporters and retail investors who viewed it as a speculative opportunity linked to Trump’s potential for a second presidential term. However, the shares have steadily lost value, particularly after President Biden announced he would not seek reelection on July 21.

The recent stock losses have outpaced a reduction in betting markets related to Trump’s election chances. According to a recent poll, Trump holds a lead among probable voters in key battleground states like Arizona, Georgia, and North Carolina, surpassing Vice President Kamala Harris and indicating a competitive race leading up to the presidential election on November 5.

In a Sunday interview, Trump stated that he would not pursue a fourth presidential run if he loses the upcoming election. As of Monday, contracts predicting a Trump victory were trading at 46 cents, with a possible payout of $1, down from a peak of 69 cents in mid-July. Contracts for a Harris victory remained stable at 57 cents over the last two weeks.

Trump’s stake in Trump Media is currently valued at approximately $1.4 billion. On September 13, he indicated that he did not plan to sell his shares, shifting attention to other significant investors who might consider cashing out. United Atlantic Ventures and Patrick Orlando, whose fund sponsored the blank-check company that merged with Trump Media, together hold around 11% of the company’s shares, as disclosed in a company filing.