Truth Social’s Stock Keeps Sliding This Week. Here’s Why

Key Takeaways

• Shares of Truth Social’s parent company fell Thursday, extending the stock’s latest round of declines.

• The stock traded as high as $70 shortly after its public listing through a merger with a blank-check company in March. It’s now around $15.

• This week, investor attention has turned to the expected end of a lock-up period for former President Trump and other insiders.

Shares of Truth Social’s parent company fell Thursday, extending the latest round of declines for Trump Media & Technology Group (DJT) since it took its current form in late March.

The stock traded as high as $70 shortly after its public listing through a merger with a blank-check company in March, but shares have been on a relatively consistent downward trajectory since then.

They rose after former President Donald Trump’s June debate with President Joe Biden and a July assassination attempt on Trump. The replacement of Biden with Vice President Kamala Harris atop the Democratic ticket and the first Harris-Trump debate have meanwhile weighed on the stock. The shares finished Thursday just under $15.

Trump Denies Intent To Sell DJT Stock

This week, investor attention has turned to another event: the expected end of a lock-up period that has prevented Trump, a company director, and several other insiders from selling their shares. Trump owned nearly 60% of the company’s outstanding stock as of an August regulatory filing.

Last week, Trump in statements indicated his support for DJT stock. “It is my intention to own this stock for a long period of time,” he wrote on Truth Social on Friday. And in a televised interview that same day, he said, “I don’t want to sell my shares. I’m not going to sell my shares.”

DJT stock has steadily fallen this week. It finished Thursday off nearly 6%.

Read the original article on Investopedia.