Trump"s Truth Social stake sale begins as lockup expires

The parent company of Truth Social, majority-owned by Donald Trump, is facing a pivotal moment as the lockup on insider sales has expired. This allows Trump to sell his stake, which he has publicly stated he has no intention of doing, fearing it would further depress the already declining stock price. Shares of Trump Media fell over 4% recently, reaching an all-time low of $14.77, reflecting investor concerns about the company's future and performance. The company has reported significant losses, exceeding $16 million in its latest quarterly earnings, and there are indications that interest in its services is diminishing. The stock's performance is closely tied to Trump's political fortunes, with many investors being his loyal supporters. The shares experienced a rally in July following an assassination attempt on Trump, but they plummeted after a recent debate with Vice President Harris. The future of Truth Social is intricately linked to the upcoming election, with expectations that the stock will perform better if Trump wins. Conversely, a loss in the election could lead to a drastic decline in the company's value, potentially driving it to zero. This situation raises concerns about conflicts of interest should Trump maintain ownership while being involved in political activities. As the political landscape evolves, the fate of Truth Social and its investors remains uncertain, hinging on the outcome of the election and Trump's decisions regarding his stake in the company.