Shares of Trump Media & Technology Group (DJT) dropped more than 6% on Monday to trade at their lowest level since the social media company went public in March. The moves come after DJT's lockup periodofficially expired last week.
Stakeholders, including former President Donald Trump, were subject to a six-month lockup period before being able to sell or transfer shares. That lockup period expired last Thursday, although Trump has said he would not sell his stake.
“I have absolutely no intention of selling,” the former president told reporters at a press conference prior to the lockup period expiration. “I love it. I use it as a method of getting out my word.”
As Yahoo Finance's Ben Werschkul detailed, the purpose of a lockup period is to protect a newly public company's interests and allow it to preserve stability before its founders can cash out.
“If I sell, it wouldn’t be the same, and I can understand that,” Trump said at the time, adding that he knows his stake has been "whittled down" in recent months.
Shares are down about 15% since Thursday and remain far off their record high of just over $79 a share.
Trump maintains a roughly 60% interest in DJT. At current levels, Trump Media boasts a market cap of about $2.5 billion, giving the former president a stake worth around $1.5 billion. Right after the company's public debut, Trump's stake was worth just over $4.5 billion.
Trump Media went public on the Nasdaq in late March after merging with special purpose acquisition company Digital World Acquisition Corp. But the stock has been on a bumpy ride since, with shares oscillating between highs and lows as the moves have typically been tied to a volatile news cycle.
In June, the stockpopped (then fell) after current commander in chief Joe Biden stumbled in his first presidential debate of 2024 with Trump. Biden dropped out of the presidential race one month later.
Since Biden's announcement, shares have remained under pressure as Vice President Kamala Harris, the Democratic presidential nominee, tracks ahead of Trump in the latest polling.
In May, Trump was found guilty on all 34 counts of falsifying business records intended to influence the 2016 presidential campaign — a verdict that sent shares down 5% the day after the conviction.His sentencing was recently delayed until Nov. 26.
Shares have fallen about 65% since the company's public debut.
Trump founded Truth Social after he was kicked off major social media apps like Facebook (META) and Twitter, the platform now known as X, following the Jan. 6, 2021, Capitol riots. Trump has since been reinstated on those platforms. He officially returned to X in mid-August after about a year's hiatus.
But as Truth Social attempts to take on the social media incumbents, the fundamentals of the company have long been in question.
Last month, DJT reported second quarter results that revealed a net loss of $16.4 million, about half of which was tied to expenses related to the company's SPAC deal. The company also reported revenue of just under $837,000 for the quarter ending June 30, a 30% year-over-year drop.
Alexandra Canal is a Senior Reporter at Yahoo Finance. Follow her on X @allie_canal, LinkedIn, and email her at alexandra.canal@yahoofinance.com.
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