Shares of Trump Media & Technology Group, associated with former U.S. President Donald Trump, experienced a significant drop of 10% on Monday, reaching a new low as recent insider selling restrictions came to an end. The company, which is predominantly owned (57%) by Trump, has seen its market capitalization decrease to approximately $2.4 billion amid six consecutive days of losses.
The stock closed at $12.15, marking its lowest finish since the company’s initial public offering in March. Since the lifting of insider selling restrictions on Thursday, Trump Media’s shares have plummeted by 17%.
Initially, the company’s value soared to nearly $10 billion after its market debut, buoyed by a wave of enthusiasm from Trump supporters and retail investors betting on his potential return to the presidency. However, the stock has faced a steady decline, particularly following President Joe Biden’s announcement of his reelection campaign on July 21.
Despite Trump’s solid standing among likely voters in key battleground states like Arizona, Georgia, and North Carolina—where he outpaces Vice President Kamala Harris according to a New York Times/Siena College poll—the stock’s downturn has outstripped a decrease in betting market odds for his electoral success.
In a recent interview, Trump stated that he would not pursue a fourth presidential run if he fails to win the upcoming election on November 5. Current betting contracts on PredictIt for a Trump victory are trading at 46 cents, down from a peak of 69 cents in mid-July, while contracts for a Harris victory remain stable at 57 cents.
Trump’s investment in his media venture is currently valued at approximately $1.4 billion. On September 13, he expressed intentions to retain his shares, drawing attention to other stakeholders who may decide to sell. United Atlantic Ventures and Patrick Orlando, who sponsored the blank-check merger with Trump Media, collectively own around 11% of the company’s shares, according to regulatory filings.
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