Topline
Trading in Trump Media & Technology Group shares was briefly halted Tuesday afternoon following a dramatic drop that erased strong gains recorded earlier in the day, marking the latest volatile movement for former President Donald Trump’s social media firm.
Trump media shares were up more than 13% at one point Tuesday. (Photo by Scott Olson/Getty Images)
Key Facts
Trump Media, the parent company of Truth Social, experienced a five-minute trading halt as the company’s stock dropped around 6%, according to CNBCwith shares plummeting even further after the freeze.
Trump Media shares were down more than 14% at $25.64 as of 3:40 p.m. EDT, a far cry from the gains it recorded earlier Tuesday, when it was trading up more than 13%.
The social media firm’s stock eventually closed down 9.6% at $27.06.
It is unclear what provoked the drop in shares, which occurred more than an hour after Trump participated in an interview with Bloomberg at the Economic Club of Chicago, where he defended his tariff-centric policies.
Trump’s estimated net worth is down $334 million at $5.2 billion as of Tuesday afternoon, though it is still up significantly from about a month ago, when it reached $3.9 billion after he declared he would not sell shares in Trump Media.
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Tangent
Trump Media has experienced several bouts of volatility since it went public in March, resulting in four trading halts. Last month, trading was halted during a strong day of gains, with Trump claiming the halt hindered the stock and saying he would “hold NASDAQ, and maybe the SEC, liable for doing what they are doing.” The former president also said the company will move to the New York Stock Exchange if another halt was made, though Trump Media remains on the Nasdaq as of Tuesday.
Key Background
Trump Media shares are still up nearly 30% in the last five days of trading despite Tuesday’s slump, as the company’s stock recovers from a record low of $12.15 posted in September. The former president, who owns around a 60% stake in Trump Media, has the option of selling his shares following the end of a lockup period last month which had prevented him from selling any part of his large share in the company. However, Trump said in September he would not sell his shares, which number around 114 million and are worth about $3 billion, CNBC reported.
Further Reading
Trump’s Net Worth Jumps $200 Million After He Says He Won’t Sell DJT Stock (Forbes)
Trump’s Ban On Selling DJT Stock Could End Today—He Says He Won’t Sell (Forbes)
