Trump Media Stock Hits Record Low as Selling Restrictions Lift

Shares of Trump Media and Technology Group Corp., the company behind Truth Social, dropped to a record low as former President Donald Trump gained the freedom to sell his stake. The stock has experienced volatility since going public in March, influenced by news related to Trump.

On Friday, shares of Trump Media and Technology Group Corp. plunged to their lowest level ever at the start of trading, coinciding with the expiry of a lock-up period restricting its largest shareholder, former President Donald Trump, from selling his shares.

Identified as TMTG, the company saw a near 7% drop in its stock price to USD 13.73, reducing its market capitalization to under USD 3 billion. Trump, who possesses over 50% of TMTG shares, holds nearly 115 million shares, equating to around USD 1.6 billion based on the latest share price.

The potential sale of large stock volumes by key stakeholders like Trump often risks triggering a broader market sell-off. Since March, TMTG shares have shown extreme volatility, largely influenced by news about Trump, the Republican presidential nominee. Despite experiencing significant price fluctuations, Trump's statement last week indicating he would not sell his shares boosted the stock by nearly 12%. However, it dropped more than 10% following a debate between Trump and Democratic VP nominee Kamala Harris.

Since its Nasdaq debut in March, where shares peaked at USD 79.38, TMTG's value has drastically diminished. The company has struggled financially, losing nearly USD 58.2 million last year while generating just USD 4.1 million in revenue, as per regulatory filings.

(With inputs from agencies.)