stock price Trump Mediaits majority shareholder is the former president Donald Trumpon Tuesday fell to the lowest level since the company began public trading in March following the merger.
DJT stock traded down to $17.89 a share during mid-day trading on Tuesday. The stock’s previous low was set on August 28, when it reached $19.38 per share. The stock price has fallen nearly 77% from its March 26 high of $79.38 after Trump Media’s merger with a publicly traded private equity firm.
Trump Media’s one-day slide of more than 8% accompanied a broader market decline on Tuesday, particularly for technology companies. Shortly before 2:00 PM ET, the Nasdaq was down 2.7%, while the Dow Jones Industrial Average and S&P 500 were down more than 1%.
But market trends can only partially explain the slide Trump Media stock price.
This is 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.
For example, stocks rose after Trump survived an assassination attempt in July, boosted voter support for his presidential bid and received a number of high-profile endorsements.
Trump Media’s recent decline comes just weeks before Trump, who owns almost 59% of DJT’s outstanding shares, and other company executives could follow suit. make money on falling stocks. As of Tuesday, Trump’s share was more than $2 billion.
Trump and other major shareholders are barred from selling their shares due to a “bundling agreement” that expires on September 25. above $12 per share for 20 of the 30 trading days that began last Friday.
Trump has not signaled that he intends to sell, but speculation has fueled speculation that his various campaign expenses and financial difficulties related to the lawsuit could influence his decision.
If Trump takes a payday, investor doubts about the company could intensify, potentially leading to a broader selloff in the stock.