On March 25, 2024, the social media platform Truth Social, created by Republican presidential candidate and former President Donald Trump, was displayed on a cell phone in Chicago.
On Tuesday, shares of Trump Media, the parent company of Truth Social, declined by nearly 10% following a session of intense trading that led to a temporary halt. This halt was triggered by a sudden drop in the stock’s price. Earlier in the day, Trump Media shares had risen by more than 13% but then experienced a turnaround, falling over 6% at the time trading was paused. The trading halt, which lasted for five minutes, ended at 2:47 p.m. ET, after which the stock continued to fall.
The closing price for Trump Media was recorded at $27.06 per share. The trading session was marked by significant volatility, with over 97 million shares being traded, a figure that surpassed the company’s average 30-day trading volume several times over. This trading activity marked the highest volume day for Trump Media since it began publicly trading on the Nasdaq, following a merger with a blank-check company.
Previously, the company’s busiest trading day occurred on July 15, shortly after Donald Trump, the company’s majority owner and Republican presidential nominee, narrowly avoided an assassination attempt during a campaign event in Pennsylvania. Many retail investors of Trump Media are reported to be supporters of the former president, purchasing and selling shares as a way to express their backing or bet on his electoral prospects against Democratic nominee Kamala Harris.
The downturn in the stock’s value reversed a weeks-long surge, which was aligned with developments in the presidential race that Trump’s supporters deemed favorable. Some online betting platforms recently shifted to favor Trump after previously indicating either a close race or a slight advantage for Harris. However, these platforms do not utilize the same methodologies as traditional political polling and should not be considered equivalents.
According to a regulatory filing on September 5, Trump owns nearly 57% of Trump Media, a stake valued at approximately $3 billion, equating to more than half of his estimated net worth as calculated by Forbes. Trump and other insiders were restricted from selling their shares until September 19, due to an expiring lockup agreement. While Trump had pledged not to sell, Trump Media announced shortly after the lockup that United Atlantic Ventures, a major shareholder, had sold nearly all of its 11 million-share stake.
In a Truth Social post early Tuesday morning, Trump expressed strong support for the platform, stating, “I LOVE TRUTH, THE REAL VOICE OF AMERICA!”
