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The stock price of Trump Media, whose majority shareholder is former President Donald Trump, fell Tuesday to the lowest level seen since the company began public trading in March following the merger.
Shares of DJT dropped to $17.89 per share around midday Tuesday, the stock previously set a low on August 28, when it reached $19.38 per share. The stock price is down about 77% from a high of $79.38 per share on March 26, following the merger of Trump Media with a publicly traded special purpose acquisition company.
Trump Media’s one-day slide of more than 8% was accompanied by a broader market decline on Tuesday, particularly for technology companies. Shortly before 2:00 pm ET, the Nasdaq was trading 2.7% lower, while the Dow Jones Industrial Average and S&P 500 were down more than 1%.
DJT stock vs Nasdaq stock exchange for six months.
But market trends may only partially explain the slide in Trump Media’s stock price.
That’s because the company’s stock typically trades more like a meme stock than a traditional investment. It also rises and falls with the political fortunes of the Republican presidential nominee.
The stock rose, for example, after Trump survived an assassination attempt in July, dovetailing with a surge in voter support for his presidential bid and several high-profile endorsements.
Trump Media’s latest decline comes weeks before Trump, who owns nearly 59% of DJT’s outstanding shares, and other company executives could cash in on the falling stock. Trump’s stock was worth more than $2 billion on Tuesday.
Trump and other major shareholders are currently barred from selling shares due to a “lock-up agreement,” which expires on September 25. But that deadline could be moved to September 20, if the stock price remains above $12 per share for 20 trading days in the 30-day trading period that began last Friday.
Trump has not signaled his intention to sell, but speculation has swirled that various campaign expenses and financial issues related to the lawsuit could weigh on his decision.
If Trump takes his salary, investors’ doubts about the company could increase, which could lead to more stock selling.
This is a developing story, please check back for updates.
