Jakub Porzycki | Nurphoto | Getty Images
The share price of Trump Media, whose majority shareholder is former President Donald Trump, fell Tuesday to the lowest level seen since the Truth Social parent company began public trading in March following a merger.
DJT shares dropped to $17.89 per share around midday Tuesday, The stock’s prior low was set on Aug. 28, when it hit $19.38 per share. The stock price is down roughly 77% from its high of $79.38 per share on March 26, following Trump Media’s merger with a publicly traded special purpose acquisition company.
Trump Media’s single-day slide of more than 8% accompanied a broader market dip on Tuesday, especially for tech companies. Shortly before 2:00 p.m. ET, the Nasdaq was trading 2.7% lower, while the Dow Jones Industrial Average and S&P 500 had both declined over 1%.
DJT stock vs. Nasdaq stock exchange over six months.
But market trends may only partially explain the slide in Trump Media’s share 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 spiked, for example, after Trump survived an assassination attempt in July, dovetailing with a surge of voter support for his presidential bid and several high-profile endorsements.
Trump Media’s latest drop comes just weeks before Trump, who owns almost 59% of DJT’s outstanding shares, and other company executives can cash in on the falling stock. Trump’s stake was worth over $2 billion as of Tuesday.
Trump and other major stockholders are currently prohibited from selling their shares due to a “lockup agreement,” which is set to expire on Sept. 25. But that deadline could get moved up to as early as Sept. 20, if the stock price remains above $12 per share for 20 trading days within the 30-trading-day period that started last Friday.
Trump has not signaled an intention to sell, but speculation has swirled that his various campaign expenses and lawsuit-related financial woes could weigh on his decision.
If Trump does take the payday, investors’ doubts about the company could intensify, potentially triggering a broader selloff of the stock.
This is a developing story, please check back for updates.
Read the original article here