Trump Media & Technology Group, the social media business owned by former president Donald Trump, surged on Friday after Trump said he has “absolutely no intention of selling” his stake in the Truth Social owner.
Shares of the stock, which trades under the ticker DJT — the same as Trump’s initials — soared $1.89, or 12%, to $17.97 on Friday. The surge helped the stock rebound from a record low on September 11, the day following his debate with Vice President Kamala Harris, with investors appearing to downgrade his chances of winning the U.S. presidential election.
Trump Media & Technology Group had already suffered from a months-long slump, which lopped billions form its valuation and shaved about $4 billion from Trump’s personal holdings in the company. Trump Media’s shares have been under pressure due to the September 19 expiration of a so-called lock-up provision, which so far has restricted Trump and other company insiders from selling their shares.
Because Trump owns 60% of the company’s stock, selling even a portion of his stake could flood the market with available shares, potentially lowering its price. At a press conference on Friday, Trump pointed to the lock-up’s expiration as the reason for his stock’s slide.
“A lot of people think the reason it’s down is a lot of people think I’m going to sell, and if I sell, it’s not going to be the same,” Trump said. “But I have absolutely no intention of selling.”
Lock-ups are a common restriction on Wall Street, designed to prohibit major investors from dumping their shares in a company soon after the company goes public. That’s because large stock sales by insiders can cause a company’s shares to tank.
Even with Friday’s bump, Trump Media & Technology Group’s share price is still 77% lower than its March peak of $79.38.