Trump’s social media stock explodes higher after Donald Trump says he’s not selling

Shares of Trump Media & Technology Group, the company behind Truth Social, surged dramatically on Friday following former President Donald Trump’s announcement that he will not be selling his stock in the company. Trump’s remarks came as the company’s lock-up period nears its end, which had created uncertainty in the market.

During a press conference, Trump confirmed his commitment to the company, stating, “No, I’m not selling. No, I love it.” His definitive stance provided a boost of confidence to investors, causing the stock price to soar by 25% in the early afternoon. Trading was briefly halted due to the sudden volatility, but by late afternoon, Trump Media shares remained up by 19%.

Trump’s assurance was in response to market speculation and concerns about the potential impact of insider sales following the expiration of lock-up restrictions. These restrictions, which are set to lift on September 19 if the share price holds above $12, would permit Trump and other insiders to sell their shares. Despite his firm denial of plans to sell, there is no clarity on whether he might consider offloading a portion of his holdings.

Currently, Trump is the largest shareholder in Trump Media, holding 57% of the company’s shares, amounting to approximately 114.75 million shares valued at $1.8 billion as of Thursday’s closing price. Despite this substantial stake, Trump’s comments have not fully quelled concerns about potential market instability if he decided to sell off a significant portion of his shares.

In recent months, Trump Media’s stock has experienced notable volatility. The value of the company has declined sharply due to mounting worries about the imminent expiration of the lock-up period and an increase in political uncertainty, particularly following recent polling that indicates a tight race for the presidency.

Additionally, the stock faced another setback earlier this week after Trump’s performance in a debate appeared less convincing to some observers. This led to a further drop in the company’s share value, contributing to the heightened market fluctuations.

The impact of Trump’s announcement highlights the sensitive nature of investor sentiment in relation to insider actions and market speculation. As the lock-up expiration approaches, the market will be closely watching to see if Trump or other major shareholders decide to make any significant moves with their stocks, which could further influence the company’s stock price.

Overall, Trump’s declaration has injected a degree of stability into Trump Media’s stock for the time being, but the situation remains fluid as the company navigates a period of heightened scrutiny and potential market shifts.