Donald Trump before Selling Truth Social Stock: Billion-Dollar Option Awaits

Following his recent TV debate against Vice President Kamala Harris, Donald Trump could make a significant financial decision next week. Starting September 19, the former U.S. President will have the option to sell his shares in the Trump Media & Technology Group, as a lock-up period for the sale of new shares concludes. Such lock-up periods are customary to protect the stock market from sudden sales by insiders. Trump holds nearly 115 million shares of the company. Based on last week's closing price of $18.04 per share, his holdings are valued at approximately $2 billion. The crucial question now is whether Trump will actually sell his shares. Despite the prospect of substantial proceeds, the stock price is currently significantly lower than it was a few months ago. When Truth Social launched on Nasdaq in March, the stock peaked at $79.38. Trump Media operates the social media platform Truth Social, which Trump created after being banned from Twitter and Facebook following the Capitol riot on January 6, 2021. However, the Sarasota, Florida-based company faces economic challenges. Last year, losses amounted to almost $58.2 million, while revenues were only $4.1 million. Trump Media shares are considered "meme stocks" by market experts. This designation is given to stocks that suddenly surge in price due to online hype, far beyond what traditional analyses would justify. In recent months, the stock price has fluctuated significantly, with trading mainly dominated by individual investors, who are often considered less experienced than professional day traders. After Trump's debate with Harris and an unexpected endorsement of Harris by Taylor Swift, Trump Media shares fell nearly 12% in pre-market trading on Wednesday.