The IT Nerd

When Trump Media, which is the company that owns floundering social media network Truth Social, Donald Trump received 115 million shares. But he couldn’t sell those shares in whole or in part for six months. That’s called a lock up period. And that lock up period expires in about three weeks. Roughly September 20th. Selling all of that stock in whole or in part could help with Trump’s mountain of legal bills, fines, and campaign costs. But there’s a problem with that if he decided to do that:

Trump owns 59% of TMTG, and any sale could tank the stock unless done in small batches.

News flash. The stock is already tanking as per this:

This is worse than the last time I checked in on this rapidly falling stock. And this is highlighted by this factoid:

TMTG has now lost 80% of its value since hitting its all-time high of $79.38 on March 26, the stock’s first day of trading under the DJT ticker. That valued Trump’s personal stake at nearly $9.11 billion at the time.

His stake is down to about $2 billion as I type this. That’s a horrible drop in value if you’re Trump. And it could get worse:

Without a fast-growing user base — and with the company likely struggling to post a profit for the foreseeable future — there’s plenty of reason Trump Media stock could continue to see new lows. There’s simply not much of a business to invest in today, and this is a stock whose free fall could be far from over.

So this is a business that can’t attract users (Truth social maybe has 5 million users), and isn’t making money. That’s not a good news story at all. And highlights the fact that Trump isn’t the great businessman that he thinks he is. So you should circle the 20th on your calendar. Because it is likely that this meme stock will crash and burn on that date.

This entry was posted on September 8, 2024 at 8:31 am and is filed under Commentary with tags Donald Trump. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.