The stock price of Trump Media & Technology Group, also known as Trump Media, rebounded quickly after a consecutive decline due to a statement from Donald Trump. On Friday, Trump publicly stated that he would not sell his shares after the lock-up period ends, clearly stating, "I'm not selling, I like it." This declaration injected confidence into the market. As a result, Trump Media's stock price soared by as much as 30% during the day, finally closing with a narrowed increase of 12%, at $17.97. This brought the value of Trump's shares to approximately $2 billion.
In the previous weeks, Trump Media's stock price had been on a continuous decline due to investors' concerns that Trump or other major shareholders might sell their shares after the lock-up period. The company's market value, which once neared $10 billion after its listing last year, has now shrunk by 70%. This is related to Trump's declining polling support in the U.S. election and Biden's decision not to run for re-election.
Despite the rebound in stock price, the market remains cautious about the long-term prospects of Trump Media. Analysts point out that the company's current revenue and profitability are extremely limited, with a net loss of $869,900 in the second quarter. Additionally, the company's social media platform, Truth Social, despite being positioned as a competitor to X, faces significant challenges in user growth and monetization. Strategists believe that Trump Media's stock price is more driven by market speculation on Trump's chances in the 2024 election rather than the company's actual business performance.
It is worth noting that after Trump's statement, the Nasdaq Stock Exchange twice halted the company's stock trading due to price volatility. The market continues to closely monitor the stock's volatility in the coming weeks.
