Trump Media stock slides again to bring it nearly 60% below its peak as euphoria fades

Apr 15, 2024, 2:11 PM

Republican presidential candidate, former President Donald Trump speaks at an election-night watch ...

Republican presidential candidate, former President Donald Trump speaks at an election-night watch party at Mar-a-Lago on March 5, 2024 in West Palm Beach, Florida. Sixteen states held their primaries and caucuses today as part of Super Tuesday. (Photo by Win McNamee/Getty Images)

(Photo by Win McNamee/Getty Images)

NEW YORK (AP) — The stock price for Donald Trump’s social media company slid again Monday, pushing it nearly 60% below its peak set late last month.

Trump Media & Technology Group was down 16.8% at $27.10 in midday trading as more of the euphoria that surrounded the stock fades. It’s a sharp comedown since nearing $80 after the owner of Truth Socialmerged with a shell company to get its stock trading on the Nasdaq under the symbol “DJT,” for Trump’s initials.

Part of the decline may be due to criticism that the stock price had zoomed way past what skeptics said the money-losing company is worth, particularly one with tough odds for success. But another part is also likely because of action Trump Media took Monday.

The company filed documents with the U.S. Securities and Exchange Commission that open the door for the future potential sale of millions of shares. The document, called an S-1, relates to warrants held by investors that can be transformed into shares of stock, as well as shares held by company insiders.

The filing also includes all the shares held by the former president. Trump, though, remains under a “lock-up” deal that largely restricts him from selling his shares for another roughly five months. His son, Donald Trump Jr., who is a director on the board, and CEO Devin Nunes, are also bound by the lock-up.

Typically, all shares of stock held by insiders subject to lock-up deals are included in such filings, according to Jay Ritter, an expert on initial public offerings of stock at the University of Florida’s Warrington College of Business.

Trump calls Facebook the enemy of the people, Meta’s stock sinks

The filing does not necessarily mean any investors are planning to sell their shares, Sarasota, Florida-based Trump Media & Technology Group said in a statement.

Trump Media got its place on the Nasdaq after merging with a company called Digital World Acquisition Corp., which was essentially a pile of cash looking for a target to merge with. It’s an example of what’s called a special purpose acquisition company, or SPAC, which can give young companies quicker and easier routes to getting their shares trading publicly.

S-1 filings are typically filed quickly after a SPAC deal closes, usually within 15 or 30 days, said Kristi Marvin, founder of SPACInsider.com, which specializes in SPAC deals.

The exercise of warrants referenced in Trump Media’s S-1 filing would increase the number of shares outstanding for the company. That in turn could put downward pressure on the stock price. When something becomes more available, it tends to fall in price unless demand for it picks up accordingly.

The drop in Trump Media’s stock price over the last few weeks hurts its shareholders, who experts say are mostly smaller-pocketed investors rather than big institutions. Several users of Truth Social have said they bought shares to show their support of the former president.

The drop also puts a huge hit on Trump’s finances directly. He could personally own nearly 114.8 million shares, depending on the company’s performance. That would be worth $3.15 billion at its current price. On March 27, that was worth nearly $7.6 billion.

On Monday, Trump arrived at a New York court for the start of jury selection in his hush-money trial. It’s the first trial of any former U.S. commander in chief.

KSL 5 TV Live

Politics & Elections

Sen. Mitt Romney (R-UT) speaks during a Senate Health, Education, Labor, and Pensions Committee hea...

Rashard Rose and Jack Forrest, CNN

Romney says if he were president he would have immediately pardoned Trump

Sen. Mitt Romney said that if he were president he would have “immediately pardoned” former President Donald Trump.

2 days ago

Landscape fabric covers the ground at a legal cannabis farm near Brewster, in north-central Washing...

Lindsay Whitehurst, Associated Press

Justice Department formally moves to reclassify marijuana as a less dangerous drug in historic shift

The Justice Department has formally moved to reclassify marijuana as a less dangerous drug, a historic shift in generations of U.S. drug policy.

2 days ago

WASHINGTON, DC - MAY 15: U.S. President Joe Biden delivers remarks at the National Peace Officers M...

Alanna Durkin Richer and Colleen Long

White House blocks release of Biden’s special counsel interview audio, says GOP is being political

The White House has blocked the release of audio from President Joe Biden’s interview with a special counsel about his handling of classified documents.

2 days ago

Fourth District congressional candidate Jake Hunsaker answers questions next to an empty podium dur...

Lindsay Aerts

Utah’s primary debates begin June 10

The Utah Debate Commission will host its series of local and federal primary debates starting June 10 ahead of Utah’s primary election on June 25.

3 days ago

FILE: Signs promoting the vice presidential debate are pictured on the University of Utah campus in...

Lindsay Aerts

Trump and Biden plan to skip October presidential debate in Utah

A planned presidential debate in October at the University of Utah is in serious jeopardy of officially being called off.

3 days ago

FILE: Slovak Prime Minister Robert Fico speaks to the media prior to talks with German Chancellor O...

Karel Janicek

Slovakia’s populist prime minister shot multiple times in attempted assassination

Slovakia’s populist prime minister has been shot multiple times and gravely wounded after a political event.

3 days ago

Sponsored Articles

Electrician repairing ceiling fan with lamps indoors...

Lighting Design

Stay cool this summer with ceiling fans

When used correctly, ceiling fans help circulate cool and warm air. They can also help you save on utilities.

Side view at diverse group of children sitting in row at school classroom and using laptops...

PC Laptops

5 Internet Safety Tips for Kids

Read these tips about internet safety for kids so that your children can use this tool for learning and discovery in positive ways.

Women hold card for scanning key card to access Photocopier Security system concept...

Les Olson

Why Printer Security Should Be Top of Mind for Your Business

Connected printers have vulnerable endpoints that are an easy target for cyber thieves. Protect your business with these tips.

Modern chandelier hanging from a white slanted ceiling with windows in the backgruond...

Lighting Design

Light Up Your Home With These Top Lighting Trends for 2024

Check out the latest lighting design trends for 2024 and tips on how you can incorporate them into your home.

Technician woman fixing hardware of desktop computer. Close up....

PC Laptops

Tips for Hassle-Free Computer Repairs

Experiencing a glitch in your computer can be frustrating, but with these tips you can have your computer repaired without the stress.

Close up of finger on keyboard button with number 11 logo...

PC Laptops

7 Reasons Why You Should Upgrade Your Laptop to Windows 11

Explore the benefits of upgrading to Windows 11 for a smoother, more secure, and feature-packed computing experience.

Trump Media stock slides again to bring it nearly 60% below its peak as euphoria fades