In a move that has captured significant attention, former President Donald Trump announced that he will not be selling his majority stake in Trump Media & Technology Group, the company behind the social media platform Truth Social. His comments on Friday led to a notable surge in the company’s stock, which saw gains of up to 30% before settling with a 12% increase for the day.
Trump Media & Technology Group, which was valued at nearly $10 billion following its stock market debut in March, has experienced a turbulent period. Despite an initial high, the stock has struggled in recent weeks, particularly after Trump’s debate with Democratic rival Vice President Kamala Harris and as the broader political landscape has shifted.
Trump, who owns approximately 57% of Trump Media, addressed concerns about the company’s stock performance and his ownership. “No, I’m not selling,” Trump stated firmly in response to questions from Reuters. “I’m not leaving. I love it. I think it’s great.” This statement comes ahead of key dates this month when Trump and other insiders are permitted to sell their shares, potentially flooding the market with additional stock.
The stock’s recent downturn has been exacerbated by political developments, including President Joe Biden’s decision to abandon his reelection bid and a drop in Trump’s lead in opinion polls as the November 5 presidential election approaches.
The upcoming expiry of the lock-up period for Trump’s shares has been a focal point for investors and market watchers. Jay Woods, chief global strategist at Freedom Capital Markets, noted that the potential for a significant sale of shares has been a major concern for some time.
In addition to his media company’s financial challenges, Trump faces legal pressures, including a delay in sentencing related to his hush money case, which has been pushed to November 12. This timing, just after the election, could provide temporary relief from the pressure of legal fees.
Trump’s latest comments and the subsequent rise in his company’s stock highlight the continuing volatility and speculation surrounding both his media ventures and political future.
