Trump Media stock slides under $18, a new low since it began publicly trading
- Trump Media, the parent company of Truth Social owned by Donald Trump, fell to a new public trading low since it debuted on the Nasdaq stock exchange in March.
- The DJT dip followed a broader market decline, with the Nasdaq, Dow Jones Industrial Average and S&P 500 all trading lower Tuesday.
- Donald Trump and other major shareholders will be allowed to sell their shares after a "lockup agreement" period ends later this month, though the Republican presidential nominee has not signaled that he plans to cash in.
The share price of Trump Media, whose majority shareholder is former President Donald Trump, fell Tuesday to the lowest level seen since the Truth Social parent company began public trading in March following a merger.
DJT shares dropped to $17.89 per share around midday Tuesday, The stock's prior low was set on Aug. 28, when it hit $19.38 per share. The stock price was down roughly 77% from its high of $79.38 per share on March 26, following Trump Media's merger with a publicly traded special purpose acquisition company.
DJT closed at $18.08 per share, down over 7% for the Wednesday trading day.
Trump Media's single-day slide accompanied a broader market dip on Tuesday, especially for tech companies. The Nasdaq ended the day 3.26% lower, while the Dow Jones Industrial Average closed down 1.51% and the S&P 500 dipped 2.12%.
But market trends may only partially explain the slide in Trump Media's share price.
Get Tri-state area news delivered to your inbox. Sign up for NBC New York's News Headlines newsletter.
That's because the company's stock typically trades more like a meme stock than a traditional investment. It also rises and falls with the political fortunes of the Republican presidential nominee.
Money Report
The stock spiked, for example, after Trump survived an assassination attempt in July, dovetailing with a surge of voter support for his presidential bid and several high-profile endorsements.
Trump Media's latest drop comes just weeks before Trump, who owns almost 59% of DJT's outstanding shares, and other company executives can cash in on the falling stock. Trump's stake was worth over $2 billion as of Tuesday.
Trump and other major stockholders are currently prohibited from selling their shares due to a "lockup agreement," which is set to expire on Sept. 25. But that deadline could get moved up to as early as Sept. 20, if the stock price remains above $12 per share for 20 trading days within the 30-trading-day period that started last Friday.
Trump has not signaled an intention to sell, but speculation has swirled that his various campaign expenses and lawsuit-related financial woes could weigh on his decision.
If Trump does take the payday, investors' doubts about the company could intensify, potentially triggering a broader selloff of the stock.
