What's happened
As the lockup period for Donald Trump's shares in Trump Media & Technology Group nears expiration on September 19, concerns grow over a potential sell-off. The company's stock has plummeted over 70% since its March debut, reflecting both Trump's political fortunes and the company's financial struggles. Analysts warn of further declines if Trump sells his shares.
Why it matters
What the papers say
According to the New York Times, shares of Trump Media fell more than 12% following a debate where Trump was perceived to be on the defensive against Kamala Harris. The publication noted that the stock's performance has become a proxy for Trump's political fortunes. Meanwhile, Business Insider highlighted that Trump's stake in the company has dropped from $6 billion to $2 billion, emphasizing the financial implications of the upcoming lockup expiration. Axios reported that Trump's comments about not needing to sell his shares briefly boosted stock prices, but the overall trend remains downward, reflecting broader market concerns.
How we got here
Trump Media & Technology Group, the parent company of Truth Social, went public in March 2024. Since then, its stock has seen significant volatility, largely influenced by Trump's political standing and the company's financial performance. The upcoming expiration of a lockup agreement on September 19 allows Trump to sell his shares, raising concerns about a potential stock price drop.
Common question
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Why Are Trump Media Shares Dropping So Much?
Trump Media & Technology Group has seen its stock plummet over 70% since its debut in March 2024. With the expiration of a lockup provision approaching, investors are left wondering about the future of the company and its ties to Donald Trump's political fortunes. Here are some common questions and answers regarding the current situation.
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Why Have Trump Media Shares Dropped So Significantly?
Trump Media & Technology Group has seen its stock plummet over 70% since its debut in March 2024. This drastic decline raises questions about the company's future and the factors influencing its stock performance. Below, we explore the reasons behind this volatility and what it means for investors.
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Why is Trump Media's Stock Declining and What Does It Mean?
Trump Media & Technology Group, the parent company of Truth Social, is facing significant challenges as its stock price continues to plummet. With the expiration of the lockup period for Donald Trump's shares approaching, many investors are concerned about the potential for a sell-off. This situation raises important questions about the intersection of Trump's political fortunes and his business ventures, as well as the broader implications for investors and the market.
More on these topics
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Donald John Trump is an American politician, media personality, and businessman who served as the 45th president of the United States from 2017 to 2021.
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Truth Social is a proposed social media platform planned to be launched by Trump Media & Technology Group. It is planned to have a limited launch on Apple's App Store in November 2021, and a full public launch in 2022.
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Kamala Devi Harris is an American attorney and politician who has served as the junior United States Senator from California since 2017.