Trump Media stock drops as major investors prepare to sell

Donald J. Trump, the largest shareholder of Trump Media & Technology Group, has announced he will not sell his shares when a lockup agreement expires on Thursday at 4 p.m. Eastern time. This lockup, which has been in place for six months, prevented major shareholders from selling their stakes following the company's merger with a public shell company. Trump's significant investment, totaling 115 million shares valued at approximately $1.8 billion, is crucial for the future of Truth Social, the social media platform he uses to communicate with supporters. While Trump plans to retain his shares, other large investors, who collectively own over 20 million shares, may choose to sell once the lockup period ends. These investors include former contestants from Trump's reality show, 'The Apprentice,' and early backers of the shell company. The potential for these investors to sell their shares has raised concerns about the stock's performance, especially since it has already dropped more than 76% from its peak six months ago. In early trading on Thursday, the stock price fell by 4%, reflecting investor anxiety regarding the impending sales. The market is closely monitoring Trump's decisions and the actions of other shareholders, as their moves could significantly impact the company's valuation. The expiration of the lockup agreement marks a pivotal moment for Trump Media, as it opens the door for potential shifts in ownership and market dynamics. The situation highlights the delicate balance between Trump's influence on the company and the actions of other investors. As the stock price continues to fluctuate, the future of Trump Media and its associated platforms remains uncertain, with the potential for further declines if significant shares are sold.