Trump’s Media Struggles and Stock Surge Amid Controversy

Trump’s Media Struggles and Stock Surge Amid Controversy

Updated on: October 11, 2024 8:39 pm GMT

Former President Donald Trump ⁣is expressing frustration with Nasdaq after its ‌routine halt of stock trading related to his media company, Trump Media & Technology‌ Group (TMTG). The ⁤stock, trading under the ticker symbol‍ DJT, experienced ⁣rapid fluctuations on​ Friday,​ leading to significant trading pauses ⁣that Trump has described as politically motivated interference.​

Trump’s reaction ‍comes in light of ⁤a 25% surge in stock value following his⁣ announcement that he ‍would not sell⁣ any of his​ shares. Amid fears of a potential sell-off due to an impending lock-up expiration, investors initially responded positively to his statements. This sharp increase triggered Nasdaq’s automatic ⁤trading halts—standard protocol ⁣designed to manage excessive volatility.

Nasdaq Trading Halts Explained

  • What Happened:

– Trading of ⁤DJT shares was halted twice on Friday following a notable⁣ price spike.

– The first halt occurred at 2:26 p.m. ET, shortly​ after Trump’s press conference, resuming at 2:31 ‍p.m. ⁤

– A second halt‍ took place at 2:34 p.m. ET, both lasting five minutes each.

  • Regulatory Mechanisms:

-⁢ These halts are part of‌ SEC-mandated mechanisms called ‘Limit⁢ up/Limit ⁣down,’ aimed ‍at curbing⁣ extreme price​ volatility.

– Joe Saluzzi, a market structure expert, highlighted that⁤ such pauses are common occurrences across all U.S. exchanges ⁣and ⁤serve to⁢ protect market stability.

Trump’s Stock Surge and Concerns

The⁣ stock price ⁤of TMTG had been⁣ under pressure for months, with a⁣ significant decline ⁣of approximately $4‌ billion in Trump’s personal holdings due ⁤to this slump. ⁤On September 11, the day ⁢after Trump’s debate with Vice President Kamala Harris, the stock hit ⁢a record low.

Key⁢ Highlights:

  • Trump announced during ‌a‌ press conference that he has ‌”absolutely no intention​ of selling”⁢ his shares.
  • Following this‌ announcement, DJT’s price soared by $1.89, or about ⁣12%, to close at $17.97.
  • Despite the⁢ rebound,⁣ TMTG’s shares remain about ⁢77% ‌lower than their peak of $79.38 in March.

Lock-Up Provision Impact

The surge in stock price comes as TMTG faces ⁤the expiration of a lock-up provision⁤ on September 19,​ which restricts Trump and insiders ⁣from selling shares. This provision is standard in public offerings and is intended to prevent large-scale sell-offs shortly after a ⁤company goes⁣ public, allowing the market ⁣to stabilize.

  • Concerns Ahead:

⁢ – If Trump were to sell‍ even⁤ a​ fraction of his 60% stake in TMTG, it could flood ‌the market with available ​shares, significantly driving ⁢down the ⁤stock price.

– Trump attributed the market’s‌ uncertainty primarily to fears regarding this ⁤upcoming lock-up expiration.

Trump’s Threat Against​ Nasdaq

In his posts on Truth Social, Trump expressed anger at Nasdaq, questioning their authority to ​pause trading and insinuating⁤ that they were “taking orders from the SEC.” ⁤He has threatened to move ⁣the trading of DJT⁤ shares to the New York Stock⁤ Exchange (NYSE) if the halts continue.

  • Trump stated: “I am going to hold NASDAQ, ​and maybe the SEC, liable for doing what they ⁤are doing.”
  • Saluzzi noted that moving to the NYSE‌ would not change the ‌regulatory‌ oversight,​ as both exchanges adhere to SEC rules.

Summary​ of Stock Performance

Trump Media & Technology Group’s recent fluctuation sheds light on the volatile nature of tech stocks⁣ and the particular ⁣challenges facing social ⁣media platforms ​in the current market ⁤environment. Here is a summary of key stock⁣ performance indicators:

| Date ⁤ ​ | Stock Price (DJT) | % ​Change |

|—————–|——————|——————|

| March⁢ (Peak) | $79.38 ⁤ ⁣ ⁣ | -⁢ ⁣ |

| September ​11 ⁤ | Record ⁣Low ‍ | – ⁢ ‌ ⁤ ‍ |

| September ⁣13⁤ | $17.97 ‌ ⁣ ⁣ | +12% ⁣ ⁤ ‍ ⁤ ‌ |

Despite the‍ current challenges, ⁤Trump’s firm stance against selling shares may offer some reassurance to⁤ investors ⁣concerned about future fluctuations.

Conclusion

Former President Donald Trump is still an important name in finance and stock trading, especially with his company, Trump’s Media & Technology Group. As he faces challenges with Nasdaq, many people are paying attention to how the market and regulators react. A key moment will come soon when a special rule about trading will end. This will be very important for TMTG as it figures out its path in the stock market.

I’m Anindita, a financial content writer with 5 years of dedicated experience, specializing in market research and ghostwriting for investments, the stock market, and personal finance. My journey has been marked by continuous evolution and refinement in storytelling, allowing me to distill complex financial concepts into compelling narratives that resonate with both novice and seasoned investors.

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