Poli Alert Politics & Civics
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Jimmy Williams
Trump Media, the parent company of the social media platform Truth Social, saw its share price drop to an all-time low on Tuesday, hitting $17.89 per share around midday. This marks a sharp fall for the company, which has lost roughly 77% of its stock value since reaching a high of $79.38 per share in March, after merging with a publicly traded special purpose acquisition company (SPAC).
The company’s single-day decline of over 8% coincided with a broader market downturn, particularly for tech stocks. The Nasdaq dropped 2.7% by mid-afternoon on Tuesday, with the Dow Jones Industrial Average and S&P 500 also falling over 1%. However, market analysts suggest that broader economic trends may only partially explain the decline in Trump Media’s stock.
Trump Media’s shares have shown volatility since going public, often behaving more like a meme stock — prone to sudden spikes and dips based on social sentiment — than a traditional investment. For instance, the stock surged after former President Donald Trump survived an assassination attempt in July, correlating with a boost in his political fortunes.
As of Tuesday, Trump Media’s share price sat well below its previous low of $19.38 per share set in late August. Trump, who owns nearly 59% of the company’s shares, has seen his stake lose considerable value, now worth around $2 billion.
Trump and other key shareholders are currently unable to sell their shares due to a lockup agreement, which expires on September 25. However, if the stock price remains above $12 per share for 20 consecutive trading days within a 30-day period that began last Friday, the agreement could expire as early as September 20. Speculation about Trump’s financial needs, including his significant legal expenses and ongoing campaign costs, has sparked debate over whether he might choose to cash in on his holdings when the lockup period ends.
If Trump or other major investors decide to sell their shares, the move could deepen doubts about the company’s long-term viability, potentially triggering a wider selloff.
