Trump Social Media Stock Price Slides More Than 66% Below Peak

On Monday, April 15, the stock price for Donald Trump's social media company, Trump Media & Technology Group, saw another significant decline, closing down 18.4% at $26.61. This represents a staggering drop of more than 66% from its peak at the end of last month.

The decline in the stock price can be attributed to multiple factors, including the diminishing euphoria surrounding the stock and criticism regarding its valuation. Critics have suggested that the stock price far exceeded the actual worth of the money-losing company, raising concerns about its prospects for success.

Furthermore, Trump Media took action on Monday by filing documents with the U.S. Securities and Exchange Commission that could pave the way for the potential sale of millions of shares. This move, combined with the overall market sentiment, likely contributed to the downward pressure on the stock price.

Impact of SEC Filing

The filed documents, known as an S-1, relate to warrants held by investors that have the potential to be converted into shares of stock, as well as shares held by company insiders, including former president Donald Trump. While the filing does not necessarily indicate immediate plans for share sales, it has raised concerns about the potential increase in the number of outstanding shares, which could further exert downward pressure on the stock price.

Former president Donald Trump, along with his son and the CEO, are subject to a "lock-up" deal that restricts them from selling their shares for approximately five months, as stated in the filing. Despite this, the decline in stock price has substantial implications for Trump's personal finances, with his potential stake in the company decreasing in value from nearly $7.6 billion to $3.15 billion.

Background on Trump Media's Nasdaq Listing

Trump Media & Technology Group gained its listing on the Nasdaq following a merger with Digital World Acquisition Corp., a special purpose acquisition company (SPAC) that provided a pathway for the former's shares to be publicly traded. The subsequent S-1 filing, which follows the SPAC deal, has raised concerns about the impact on the company's stock price and its shareholders.

Experts have highlighted that the recent decline in stock price primarily affects smaller investors, including users of Truth Social who expressed their support for the former president by purchasing shares. The substantial decrease in the stock price has led to financial repercussions for these shareholders.

Meanwhile, on Monday, Donald Trump appeared in a New York court for the commencement of jury selection in his hush-money trial, marking the first trial of any former U.S. president. This further adds to the unfolding developments surrounding Trump's personal and legal affairs.