Donald Trump’s Shares Reach Lowest Since January, Raising Concerns

Trump Media’s latest move to issue millions more shares comes amidst a turbulent time for the company, coinciding with the onset of former President Trump’s hush-money criminal trial in New York. The decision to issue additional shares is seen as a step toward allowing insiders, including Trump himself, to sell their holdings, potentially injecting more liquidity into the company.

Since its formal stock exchange debut in March, Trump Media has experienced a significant decline in share price, with shares falling another 14% on Monday to less than $28 apiece. This decline comes despite the initial surge in share price above $70 after its debut on the Nasdaq stock exchange via a merger with Digital World Acquisition Corp.

The merger injected about $200 million into the company, resulting in billions of dollars in paper wealth for Trump, the majority shareholder. However, he is currently barred from selling his shares until around September.

In a regulatory filing, Trump Media disclosed plans to potentially sell 146.1 million shares, including 114.8 million ones owned by Trump. Additionally, the company announced plans to issue roughly 21.5 million additional shares in connection with warrants, aiming to raise approximately $247 million through such sales.

Despite the anticipated nature of these announcements, the company’s shares plummeted to their lowest levels since January. Analysts suggest that Trump Media shares remain overvalued compared to the size of its social media platform, Truth Social, which reported relatively modest traffic and financial figures.

Analysts attribute the stock’s volatility to small-time investors rather than large institutional players. Investors’ optimism has influenced the company’s stock price, particularly during periods when Trump emerged as a leading Republican presidential candidate.

To bolster confidence in the company, Trump has emphasized the significance of Truth Social as a platform for his message. He has urged his followers to support Truth Social, framing it as a movement aligned with his vision for America.

Despite these efforts, Trump Media faces scrutiny and skepticism from analysts, particularly regarding its financial viability and long-term prospects in the competitive social media.

Trump Media’s latest move to issue millions more shares comes amidst a turbulent time for the company, coinciding with the onset of former President Trump’s hush-money criminal trial in New York. The decision to issue additional shares is seen as a step toward allowing insiders, including Trump himself, to sell their holdings, potentially injecting more liquidity into the company.

Since its formal stock exchange debut in March, Trump Media has experienced a significant decline in share price, with shares falling another 14% on Monday to less than $28 apiece. This decline comes despite the initial surge in share price above $70 after its debut on the Nasdaq stock exchange via a merger with Digital World Acquisition Corp.

The merger injected about $200 million into the company, resulting in billions of dollars in paper wealth for Trump, the majority shareholder. However, he is currently barred from selling his shares until around September.

In a regulatory filing, Trump Media disclosed plans to potentially sell 146.1 million shares, including 114.8 million ones owned by Trump. Additionally, the company announced plans to issue roughly 21.5 million additional shares in connection with warrants, aiming to raise approximately $247 million through such sales.

Despite the anticipated nature of these announcements, the company’s shares plummeted to their lowest levels since January. Analysts suggest that Trump Media shares remain overvalued compared to the size of its social media platform, Truth Social, which reported relatively modest traffic and financial figures.

Analysts attribute the stock’s volatility to small-time investors rather than large institutional players. Investors’ optimism has influenced the company’s stock price, particularly during periods when Trump emerged as a leading Republican presidential candidate.

To bolster confidence in the company, Trump has emphasized the significance of Truth Social as a platform for his message. He has urged his followers to support Truth Social, framing it as a movement aligned with his vision for America.

Despite these efforts, Trump Media faces scrutiny and skepticism from analysts, particularly regarding its financial viability and long-term prospects in the competitive social media landscape.