Current:Home > InvestDJT stock dive: What's behind Trump Media's plummeting price? -Achieve Wealth Network
DJT stock dive: What's behind Trump Media's plummeting price?
View
Date:2025-04-13 20:10:48
Trump Media & Technology Group plunged again Thursday after regulators approved its registration statement, clearing the way for investors to exercise warrants and for the company to issue extra shares, making millions more available for trading.
Warrants, which reward investors by letting them swap their holdings for shares in the company, can dilute the value of the shares held by ordinary shareholders. Typically some of the investors who exercise warrants will sell the shares, putting pressure on the stock.
The social media company behind Trump’s go-to social media platform Truth Social plummeted 15% to close at $26.75 in trading Thursday, flirting with its all-time low of $22.55.
Trump Media share price tanks:Why the DJT stock keeps falling
Donald Trump loses billions as DJT stock tanks
The former president and Republican nominee has lost billions in paper wealth since the beginning of June. As Trump Media’s largest shareholder, he has nearly 115 million shares worth about $3 billion, down from more than $5 billion. Trump and other insiders are restricted from selling stock until September unless the board waives that restriction or moves up the lock-up period.
The stock’s long slide began following the former president’s guilty verdict on all 34 felony counts in his criminal hush money trial. Trump Media, which trades under the vanity ticker “DJT,” has tanked 48% since May 30 when a New York jury found Trump guilty of falsifying business records.
DJT CEO pumps up Trump Media stock
Trump Media hailed the news that its registration statement was declared effective. The warrants could add up to $247 million to the Trump Media balance sheet.
“We’re expecting to be well positioned to energetically pursue TV streaming, other enhancements to the platform, and potential mergers and acquisitions,” Trump Media Chief Executive Officer Devin Nunes said in a statement.
As Trump campaigns, he's spreading QAnonSome call that 'playing with fire'
Nunes has written letters to Congress and other regulators to ask for an investigation into “naked” short selling, an illegal form of short selling for which he has blamed the volatility in the company’s stock.
Short sellers don't actually own the shares, but borrow them and then sell them, betting the stock will fall so they can buy back the shares at a lower price and keep the difference. “Naked” short selling involves betting a stock will fall without borrowing or owning the shares.
Trump media stock volatility increases
Trump Media has been volatile since going public earlier this year, soaring as high as $79.38 after its debut before dropping as low as $22.55.
Its market cap, which has slipped below $5 billion, rests almost entirely on the Trump brand and his loyal following, including small-time investors who’ve shown their support for him by propping up the stock.
The developments only add to the uncertainty that has surrounded the Trump Media stock since it began trading in March after the merger with shell company Digital World Acquisition Corp.
In competing for ad dollars and eyeballs with big-name social media companies like Facebook, TikTok and YouTube, Trump Media is a distant laggard. It reported a first-quarter net loss of $327.6 million on less than $1 million in revenue.
veryGood! (963)
Related
- Head of the Federal Aviation Administration to resign, allowing Trump to pick his successor
- Will the American Geophysical Union Cut All Ties With the Fossil Fuel Industry?
- The 'physics' behind potential interest rate cuts
- Why is Draymond Green suspended indefinitely? His reckless ways pushed NBA to its breaking point
- Don't let hackers fool you with a 'scam
- Buster Posey says San Francisco's perceived crime, drug problems an issue for free agents
- 'Wonka' returns with more music, less menace
- Changes to Georgia school accountability could mean no more A-to-F grades for schools and districts
- Trump's 'stop
- Colombian congressional panel sets probe into president over alleged campaign finance misdeeds
Ranking
- San Francisco names street for Associated Press photographer who captured the iconic Iwo Jima photo
- Live updates | Israel will keep fighting Hamas ‘until the end,’ Netanyahu says
- Man charged in the murder of Detroit synagogue president Samantha Woll
- Lawmaker’s suspension means a possible special election and more trouble for U.K. Conservatives
- Apple iOS 18.2: What to know about top features, including Genmoji, AI updates
- AP PHOTOS: Crowds bundle up to take snowy photos of Beijing’s imperial-era architecture
- These 50 Top-Rated Amazon Gifts for Women With Thousands of 5-Star Reviews Will Arrive By Christmas
- Amazon, Target and Walmart to stop selling potentially deadly water beads marketed to kids
Recommendation
Chuck Scarborough signs off: Hoda Kotb, Al Roker tribute legendary New York anchor
Kyiv protesters demand more spending on the Ukraine’s war effort and less on local projects
Dismayed by Moscow’s war, Russian volunteers are joining Ukrainian ranks to fight Putin’s troops
Men charged with illegal killing of 3,600 birds, including bald and golden eagles to sell
Behind on your annual reading goal? Books under 200 pages to read before 2024 ends
An investigation opens into the death of a French actress who accused Depardieu of sexual misconduct
The Dodgers are ready to welcome Shohei Ohtani to Hollywood
Albanian opposition disrupts parliament as migration deal with Italy taken off the agenda