Trump Media Faces $4B Downslide As Shareholders Prepare For Lockup Agreement Expiration
Portfolio Pulse from Bibhu Pattnaik
Trump Media & Technology Group Corp. faces a $4 billion decline in value as its lockup agreement nears expiration, prompting potential insider sell-offs. Despite Trump's claim of not selling his shares, the stock surged 12%. The company's valuation remains high despite low revenues.
September 15, 2024 | 8:01 pm
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Trump Media & Technology Group Corp., operating Truth Social, faces a $4 billion value drop as its lockup agreement nears expiration. Major shareholders may sell, but Trump claims he won't. The stock surged 12% after his statement, but concerns remain over high valuation and low revenues.
The expiration of the lockup agreement could lead to significant insider selling, putting downward pressure on the stock. Trump's statement of not selling provided a temporary boost, but the high valuation against low revenues remains a concern, likely leading to a negative short-term impact.
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IMPORTANCE 90
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