Trump Media, the company behind Truth Social and majority-owned by former President Donald Trump, hit a new low Tuesday, with shares dipping to $17.89 during midday trading.
This marked the lowest price since the company went public in March following its merger with a special purpose acquisition company (SPAC).
The stock closed at $18.08, down more than 7% for the day, and has dropped roughly 77% from its peak of $79.38 in March.
The previous low of $19.38 was set on August 28.
Tuesday’s decline coincided with a broader market slump, particularly for tech stocks, with the Nasdaq falling 3.26%, the S&P 500 losing 2.12%, and the Dow dropping 1.51%.
Yet, Trump Media’s slide appears driven by more than just market trends.
Unlike traditional stocks, Trump Media has often behaved more like a meme stock, its price swinging with political momentum.
The stock surged in July after an assassination attempt on Trump, aligning with increased voter support and high-profile endorsements for his presidential bid.
Now, with just weeks to go before Trump and other top shareholders are eligible to sell their shares—thanks to a lockup agreement set to expire on September 25—investors are on edge.
If the stock stays above $12 for 20 consecutive trading days, that date could shift to as early as September 20.
While Trump hasn’t indicated any plans to sell, speculation is swirling. With mounting legal bills and campaign expenses, Trump’s financial pressures could play a role in his decision.
If he does choose to cash out, it may trigger a broader sell-off, deepening investor concerns about the company’s business outlook.
As investors brace for what’s next, Trump Media’s future hangs in the balance, closely tied to both political and financial uncertainties.
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