Trump Media Shares Hit Record Low as Lockup Period Ends

On September 18, 2024, shares of Trump Media reached a new record low, just one day before the expiration of a lockup period that had restricted major shareholders from selling their stakes. This lockup period was designed to stabilize the stock price following the company's public debut through a reverse merger earlier in the year. The end of this period allows significant shareholders, including former President Donald Trump, to sell their shares freely. Trump holds approximately 60% of the company's shares and has publicly declared that he has 'absolutely no intention' of selling them, despite the current market conditions. The decline in share value has been substantial, with Trump's stake decreasing from $1.4 billion to $1.2 billion in a matter of days. This drop represents an 80.2% decrease from the stock's peak value of $79.38 in March. The circumstances surrounding this decline include market volatility and shareholder concerns, particularly after a recent ruling that awarded additional shares to another party, further impacting the stock price. As the lockup period ends, the market will be closely watching how the stock performs and whether Trump will maintain his position or reconsider his stance on selling. The situation reflects broader trends in the market and the challenges faced by newly public companies, especially those associated with high-profile figures. Overall, the future of Trump Media remains uncertain as it navigates these financial challenges and the implications of its major shareholders' decisions.