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Republican presidential nominee former President Donald Trump speaks during a news conference held at Trump National Golf Club Los Angeles in Rancho Palos Verdes. (AP)Donald Trump, the Republican US presidential candidate, announced on Friday that he has no intention of selling his majority stake in Trump Media & Technology Group, the company behind Truth Social. Trump also confirmed that he plans to remain on the social media platform he founded, Reuters reports.
Shares in Trump Media surged by as much as 30% following his statement and were last reported up 11%. Trump, who holds approximately 57% of the company, made the remarks after a week where the company’s shares had slumped following his televised debate with Vice President Kamala Harris. Responding to a question from Reuters, Trump said, “No, I’m not selling… I’m not leaving. I love it. I think it’s great”, as reported by Reuters.
Trump Media’s stock, popular among retail traders, has experienced volatility, with its value previously soaring to nearly $10 billion following its stock market debut in March.
However, shares have lost much of their value since then, with the decline accelerating in recent weeks. The upcoming US presidential election and Trump’s shrinking lead in opinion polls have been factors in the share price drop.
The former president and other company insiders will soon be allowed to sell their shares under provisions set out at the time of the company’s stock listing. If the stock price remains at or above $12 for 20 trading days from August 22, Trump will be eligible to sell his shares starting September 20. Otherwise, he will be permitted to sell starting September 26.
As of Friday, the stock was trading at $17.89, valuing Trump’s stake at around $2 billion. According to Forbes, Trump’s total wealth is estimated at $3.7 billion.
Analysts note that Trump Media’s $3.6 billion stock market valuation is far removed from its financial fundamentals, with the company recently reporting a loss of $869,900 for the quarter ending June 30.
Jay Woods, chief global strategist at Freedom Capital Markets, commented, “The upcoming lock-up expiry related to Trump’s shares is something a lot of people on the street have been watching for weeks.”
(with inputs from Reuters)
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