Trump Media stock hit a new low on Thursday after former President Donald Trump’s lockup period expired, allowing insiders and early investors to sell their shares for the first time. The stock dropped 15% in early trading before rebounding slightly later in the day.
The lockup period, which typically lasts 90 to 180 days after a company goes public, is designed to prevent insiders from flooding the market with shares and driving down the price. In Trump Media’s case, the lockup period was set at 180 days, which expired on Thursday.
The expiration of the lockup period comes at a challenging time for Trump Media. The company, which was founded by Trump in partnership with his former campaign manager Brad Parscale, has struggled to gain traction since its IPO earlier this year. Amid controversies surrounding Trump’s social media platform Truth Social and allegations of mismanagement, investor confidence in the company has waned.
The stock’s decline on Thursday reflects growing concerns among investors about the company’s long-term prospects. With insiders now able to sell their shares, there is a fear that a flood of selling could further drive down the stock price.
In a statement, Trump Media sought to reassure investors, saying that the expiration of the lockup period was a routine event and that the company remained committed to its mission of providing a platform for conservative voices. However, the statement did little to quell investor fears, as the stock continued to slide throughout the day.
Analysts are divided on the future of Trump Media. Some believe that the company still has potential to turn things around, citing its strong brand recognition and loyal following among Trump supporters. Others, however, are more skeptical, pointing to the company’s lackluster performance and the challenges it faces in a crowded and competitive media landscape.
As Trump Media grapples with its stock hitting new lows, the company faces an uphill battle to regain investor confidence and turn its fortunes around. Only time will tell whether the company can overcome its current challenges and emerge as a viable player in the media industry.