News: Trump Media Stock Reaches New Low as Market Trends Shift

Current Status of Trump Media Stock

The share price of Trump Media, whose majority shareholder is former President Donald Trump, fell to the lowest level since the company began public trading in March following a merger. DJT shares dropped to $17.72 per share Tuesday afternoon before recovering somewhat to end the day at $18.08. The stock’s prior low was set on Aug. 28, when it hit $19.38 per share.

Significant Decline

The stock price is down roughly 77% from its high of $79.38 per share on March 26. The latest decline follows a single-day slide of more than 7%, coinciding with a broader market dip on Tuesday, especially in tech companies. The Nasdaq fell more than 3%, while the Dow Jones Industrial Average declined 1.5% and the S&P 500 slid more than 2%.

Market Trends and Political Influence

Market trends may only partially explain the slide in Trump Media’s share price. The company's stock typically trades more like a meme stock than a traditional investment, rising and falling with the political fortunes of the Republican presidential nominee. For instance, the stock spiked after Trump survived an assassination attempt in July, coinciding with voter support for his presidential bid.

Upcoming Lockup Agreement Expiration

Trump Media’s latest drop comes just weeks before Trump, who owns almost 59% of DJT’s outstanding shares, and other executives can cash in on the falling stock. Trump’s stake was worth over $2 billion as of Tuesday. Currently, stockholders are forbidden from selling due to a lockup agreement, set to expire on Sept. 25, which might be moved up to Sept. 20 if the stock price remains above $12 per share for 20 trading days.

Speculation and Investor Concerns

Trump has not signaled an intention to sell, but speculation about his campaign expenses and lawsuit-related financial issues could affect his decision. If Trump chooses to sell, investors’ doubts about the company might intensify, leading to a broader selloff of the stock.