This photo illustration shows an image of former President Donald Trump reflected in a phone screen displaying the Truth Social app, in Washington, DC, on February 21, 2022.
Stefani Reynolds | AFP | Getty Images
The Trump Media sell-off accelerated on Thursday, with shares of former President Donald Trump’s company falling as much as 15% shortly after the opening bell.
The company behind conservative social media app Truth Social, which trades on the Nasdaq as DJT, was hovering around $27 per share when the market was open.
That price is more than 40% lower than at the beginning of June, when Trump Media shares cost just over $49 per share.
The slide represents a huge loss on paper for Trump, the majority owner of Trump Media.
Trump’s 114,750,000 shares in the company, which were worth more than $5.6 billion at the start of the month, would be worth about $3.2 billion based on Thursday’s share prices.
Trump Media has been in a slump since May 30, when a New York jury convicted the former president and presumptive Republican presidential nominee on 34 felony counts of falsifying business records.
That downward trend accelerated Tuesday, aligning with a corporate deadline related to the expected approval of the registration statement by the Securities and Exchange Commission.
The stock fell nearly 10% during Tuesday’s session, representing more than double its average trading volume. After the bell, Trump Media announced that the SEC had declared its registration statement effective. The stock fell more than 17% in post-market trading after the announcement.
The development gives early investors in Trump Media permission to exercise warrants they hold in the company and allows shareholders to publicly resell securities covered by the registration statement.
This is news development. Check back later for updates.
