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Donald Trump’s media company, Trump Media & Technology Group (DJT), showed promise after its March listing. However, in September, the shares have cut 69% of the company’s value. As per a report by Bloomberg, the end of the company’s lockup period from its blank-check deal on September 19 can further push down the price. DJT stocks lose 69% The stock of Donald Trump’s media company has declined as the lockup period from its blank-check deal is about to end. Trump Media & Technology (DJT) Group Corp., which owns Truth Social, was listed in March 2024. And when any company goes public through blank-check mergers, early investors face a lock-in period. This essentially means that founders and company insiders can sell their shares after this period, potentially increasing the supply of shares in the market. A short buy demand leads to a share price drop. The lock-in period reportedly expires on September 19, which can push the prices down further. According to Bloomberg, Trump Media’s peak market valuation was in mid-May of around $10 billion. However, there has been a 69% fall since then with the company now valued under $3.4 billion. Trump’s return to X is a negative for Truth Social Another reason for the decline could be Trump’s return to X (formerly known as Twitter), as it has diverted attention away from Truth Social. Truth Social has failed to add to the media company’s revenue amid its increasing losses. Meanwhile, Trump’s personal stake is down from $6 billion to $2 billion over the last few months. Negative market sentiments also arise from speculation that Trump will further reduce his stake. #TrumpMedia DJT Stock Plumbs New Lows Ahead of Potential Trump Share Sale Shares of Donald Trump’s social-media startup hit their lowest level on Wednesday since the company’s public listing, on…

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Filed under: News - @ September 6, 2024 9:25 am