Trump Media stock is falling, many are losing millions in the process

Donald Trump’s entry into social media via Trump Media & Technology Group and Truth Social has taken a tumultuous turn. Trump, who owns 60% of the shares, has seen the value of his stake plummet.

The stock price of Donald Trump’s once-high-flying media company is sinking just as the lockup period from its blank-check deal is about to end https://t.co/ZEEgyKxnSN

— Bloomberg (@business) September 5, 2024

The value of his shares in Trump Media & Technology Group fell from $4.9 billion to just $2 billion in a short space of time.

What’s more, TMTG’s share price fell below $17, before rising just above it this morning (September 6), wiping out virtually all the gains made.

Truth Social’s core platform seems to be struggling to attract a wider audience, raising concerns about its long-term viability in an extremely competitive social media sector.

The share lock-up agreement in place for TMTG, designed to stabilize prices after the IPO, will expire on September 19. This suggests that Trump could liquidate his shares immediately thereafter, putting the stock’s future in an uncertain position.

Donald Trump’s recent return to X (formerly Twitter) is also unlikely to improve Truth Social’s popularity.