Trump Media closes up nearly 8%, continuing post-sell-off rally

[Pelican Press 0]

Trump Media closes up nearly 8%, continuing post-sell-off rally

A smartphone displays the logo of Donald Trump’s Truth Social app on March 25, 2024.

Anna Barclay | Getty Images

Shares of Trump Media & Technology Group closed up nearly 8% on Wednesday, adding to the stock’s post-sell-off rally.

The stock initially sank more than 6% mid-morning but closed up 7.92% at $39.25 per share on Wednesday.

Trump Media, which trades under the ticker “DJT,” plummeted nearly 50% in the three weeks following the felony conviction of former President Donald Trump, Trump Media’s majority shareholder.

The sell-off continued last week after the Securities and Exchange Commission declared the company’s registration of additional shares effective, which sent the stock tumbling in after-hours trading on June 18.

Shares of Trump Media closed at $26.75 last Thursday, its lowest level since April, but began rebounding on Friday. By Tuesday, the stock had surged more 36% from Thursday’s close, and Wednesday’s move brings its recent gains to more than 45%.

The stock is still down 23% from Trump’s conviction on May 30.

Trump Media, the parent company of social media platform Truth Social, started publicly trading on March 26 after merging with a special purpose acquisition company. Its wild swings since then — like Wednesday’s — have often come without a clear reason.

In its latest earnings report filed in May, the company disclosed a net loss of $327.6 million and total revenue of $770,500 for the first quarter of the year. Truth Social has struggled to maintain its user base, and the company recently warned investors that a change in usage from its most well-known user — Trump — could have a “a material adverse effect” on the platform.

The former president owns nearly 65% stake in Trump Media, but he cannot sell any of his 114,750,000 shares until a post-merger lock-up ******* ends in late September.

Trump Media’s market capitalization stood at nearly $7 billion at Wednesday’s close.

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