Shares of Trump Media & Technology Group, owned in part by former President Donald Trump, fell 10% on Monday, hitting a new low as the expiration of insider selling restrictions triggered a wave of selling. The stock closed at $12.15, marking its lowest point since the company’s market debut in March, and bringing its market capitalization down to $2.4 billion.
The company, which operates the Truth Social app, has seen its stock decline for six consecutive sessions, with a total drop of 17% since insider selling restrictions lifted on Thursday. The stock’s value had initially soared to nearly $10 billion following its debut, buoyed by enthusiasm from Trump supporters and retail investors betting on his potential return to the presidency.
Recent months have seen a steady decline in Trump Media shares, particularly following President Joe Biden’s decision to end his reelection campaign on July 21. Notably, losses in Trump Media’s stock have outpaced changes in betting-market odds regarding Trump’s chances of winning the upcoming election.
Polling data indicates Trump leads likely voters in key battleground states, such as Arizona, Georgia, and North Carolina, according to a New York Times/Siena College poll released Monday. Despite the downturn in his media company’s stock, Trump remains a strong contender for the Republican nomination.
In a recent interview, Trump stated that he would not seek a fourth consecutive term if he loses the November 5 election. As of Monday, PredictIt contracts for a Trump victory were trading at 46 cents, down from a peak of 69 cents in mid-July, while contracts for a Harris victory were relatively stable at 57 cents.
Trump’s stake in Trump Media is now valued at approximately $1.4 billion. He reiterated on September 13 that he does not intend to sell his shares, pointing the spotlight on other significant shareholders, such as United Atlantic Ventures and Patrick Orlando, who together hold about 11% of the company’s shares.
