STR | Nurphoto | getty images
Sell tax for a week trump media Shares of former President Donald Trump’s company rose Thursday, falling nearly 15% after another volatile trading session.
The founder of conservative social media app Truth Social traded on the Nasdaq under the ticker symbol DJT, closing at $26.75 per share.
That price was more than 40% lower than where Trump Media’s stock was trading in early June, when its stock price was just over $49 per share.
DJT’s stock price drop on Thursday was accompanied by heavy trading volume. More than 13.2 million shares of Trump Media stock changed hands during the trading day. This is more than three times the 30-day average trading volume.
Trump Media & Technology Group stock price
The high trading volume and price volatility of Trump Media stock is unusual considering that the company generates very little revenue.
Thursday’s loss followed a nearly 10% decline in Tuesday’s session, more than double its average trading volume.
After the bell on Tuesday, Trump Media reported that the Securities and Exchange Commission had declared the registration statement effective. The news sent the stock plummeting more than 17% in after-hours trading. The market was closed on Wednesday.
Analysts note that the SEC’s approval of Trump Media’s additional stock registration is likely to be a catalyst for this week’s frenzied trading.
The move deepened a slump in Trump Media stocks that began around May 30, when a New York jury found the former president guilty of 34 felonies for falsifying business records.
An SEC-approved prospectus allows a company’s early investors to resell certain shares and exercise stock warrants. These sales may lower the stock price by increasing the total number of shares available.
Nonetheless, the company touted the development as good news, predicting it could generate up to $247 million in revenue if all warrants were exercised for cash.
The plunge in stock prices over the past three weeks has taken a huge toll on Trump’s net worth, at least on paper. The presumptive Republican candidate owns 114.75 million shares of the company, or about a 65% stake.
The stock was worth more than $5.6 billion earlier this month. After Thursday’s close, the stock was worth about $3 billion.
President Trump cannot sell his shares until the six-month lock-up period expires at the end of September.
Lock-up provisions prevent top investors and insiders from selling their stake as soon as the company goes public.
Trump Media began trading publicly in late March following a lengthy merger with a special purpose acquisition company.
DJT’s meteoric rise during its first month on the Nasdaq seemed unrelated to any specific news or business events, leading critics to label DJT a meme stock.
The company’s only product, Truth Social, launched in early 2022 and has drawn relatively few users from established social media giants like X and Facebook. Trump Media reported last month that it had a net loss of about $328 million in the first quarter on revenue of about $771,000.
