As Harris takes over Biden's presidential campaign and reshapes the US election landscape, the once popular "Trump deal" is gradually fading away. Trump Media&Co., a media company under Trump; The stock price of Technology Group (referred to as Trump Media) has recently come under significant selling pressure. However, Trump's statement on Friday seemed to inject a "shot in the arm" into the stock.
Trump stated on Friday that he will not sell his holdings in Trump Media after the ban period ends in the coming days.
No, I won't sell it. I won't leave. I like it. I think it's great, "Trump said in response to questions from reporters.
As soon as this statement was made, the stock price of Trump Media skyrocketed by 30% on Friday, and as of the close of the day, the increase narrowed to 12%, closing at $17.97.
This makes Trump's shareholding value approximately $2 billion. Trump holds approximately 57% of the shares in Trump Media. According to the Forbes Rich List, Trump's current wealth is approximately $3.7 billion.
Next Friday (September 20th), the lock up period for Trump Media's stock listing will expire, and Trump and other company insiders will be allowed to sell their stocks at that time.
Due to investors' concerns that Trump or other major shareholders will sell a large number of shares, the stock price of Trump Media has been steadily declining for several weeks before the upcoming lifting of restrictions. Trump's speech on Friday dispelled investors' concerns.
Trump Media currently operates a social media network called Truth Social, which is X's rival. After going public in March this year, the company's market value soared to nearly $10 billion. The stock is popular among retail traders and is seen as a speculative bet on Trump's chances of a second four-year presidential term.
However, since then, the stock price of Trump Media has plummeted significantly, with its market value shrinking by nearly 70%. In recent weeks, the decline has intensified after Biden gave up his re-election campaign and Trump lost his lead in public opinion polls. After a televised debate between Trump and his Democratic rival Kamala Harris, the stock further fell.
It is worth noting that Trump Media's revenue is only equivalent to two Starbucks coffee shops. Strategists point out that the company's $3.6 billion market value is unrelated to its daily business. In the second quarter ending June 30th, the company incurred a loss of $869900.
This company has no fundamentals. It doesn't have a path to profitability. It's just driven by reviews, hopes, and dreams, "said Dennis Dick, a trader at Triple D Trading.
After Trump made the above remarks, the Nasdaq Stock Exchange suspended trading of Trump media stocks twice, each time for five minutes, which is common during market volatility.
What right do they have to do this? "Trump later posted on Truth Social, while also threatening to list his company on the New York Stock Exchange.