Trump’s social media stock soars as he’s “Not Selling”

Trump’s social media stock surged after he announced he is not selling shares in his controversial company, Trump Media. Trump and other insiders in Trump Media & Technology Group will be free to sell shares as soon as next week when lock-up restrictions are set to expire. Trump’s comments instantly sent the volatile company’s share price spiking 25% on Friday afternoon before trading was halted for volatility. In late afternoon trading, Trump Media was up 19%.

Regulatory filings indicate that the lock-up period will expire as soon as the closing bell on September 19 if the closing share price remains above $12. That would allow Trump to sell shares, although experts caution that it would be nearly impossible for him to dump all or even most of his stock without crashing the share price. It is not clear if Trump is ruling out selling even a smaller piece of the company.

Trump is the dominant shareholder in the Trump Media, owning 57% of the outstanding shares. His stake of 114.75 million was valued at $1.8 billion based on Thursday’s closing price. Trump Media’s value plunged sharply in recent months because of a combination of concerns about the expiring lock-up restriction and in response to polls indicating a close race for the White House. The stock tumbled to record lows earlier this week after the former president’s shaky performance in Tuesday night’s debate.

A selloff could help Trump pay off his mounting legal bills, but offloaded shares also have the potential to flood the market and drive down the share price. Cashing in shares could have been seen as a vote of no confidence in the company and could have antagonized Trump followers who have shown their support for the former president by pouring money into the stock.

The possibility of former President Trump selling some or many of his 114.75 million shares in Trump Media starting later this month has been depressing the stock price. The stock plunged more than 10% Wednesday, following the presidential debate between Trump and Vice President Kamala Harris. Shares slipped further Thursday to end the day at $16.08, a record low.