Shares of Trump Media & Technology Group (DJT) fell more than 10% on Monday, trading at their lowest level since the social media company went public in March. The measures come after DJT’s lock-up period officially expired last week.
Stakeholders, including former President Donald Trump, were subject to a six-month lock-up period before they could sell or transfer shares. That lock-up period expired last Thursday, although Trump has said he would not sell his stake.
“I have absolutely no intention of selling,” the former president told reporters at a news conference before the lock-up period expired. “I love it. I use it as a way to speak my word.”
As Yahoo Finance’s Ben Werschkul detailed, the purpose of a lock-up period is to protect the interests of a newly public company and allow it to maintain stability before cashing out its founders.
“If I sell, it wouldn’t be the same, and I can understand that,” Trump said at the time, adding that he knows his stake has been “downsized” in recent months.
Shares are down about 20% since Thursday and remain far from their all-time high of just over $79 per share.
Trump maintains a rough 60% interest in DJT. At current levels, Trump Media has a market capitalization of about $2.5 billion, giving the former president a share of about $1.5 billion. Immediately after the company’s public debut, Trump’s stake was worth just over $4.5 billion.
Trump Media went public on the Nasdaq at the end of March to combine with special purpose acquisition company Digital World Acquisition Corp. But the stock has had a bumpy ride since then, with shares swinging between highs and lows as the moves typically correlate with a volatile news cycle.
In June, the stock plummeted (and then fell) after current Commander-in-Chief Joe Biden stumbled in his first 2024 presidential debate with Trump. Biden dropped out of the presidential race a month later.
Since Biden’s announcement, stocks have remained under pressure as Vice President Kamala Harris, the Democratic presidential nominee, leads Trump in the latest poll.
In May, Trump was found guilty on all 34 counts of falsifying corporate records intended to influence the 2016 presidential campaign — a verdict that sent shares down 5% the day after the conviction. His verdict was: recently postponed until November 26.
Shares are down about 65% since the company’s public debut.
Trump founded Truth Social after being kicked off major social media apps like Facebook (META) and Twitter, the platform now known as He officially returned to X in mid-August after a hiatus of about a year.
But as Truth Social tries to take on the social media incumbents, the company’s fundamentals have long been in question.
Last month DJT reported Second-quarter results showed a net loss of $16.4 million, about half of which was related to expenses related to the company’s SPAC deal. The company also reported revenue of just under $837,000 for the quarter ended June 30, down 30% year over year.
Alexandra Canal is a senior reporter at Yahoo Finance. Follow her on X @allie_canal, LinkedIn, and email her at alexandra.canal@yahoofinance.com.
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