Trump says he is not selling his shares of media company
Updates with closing price, stock valuations in paragraphs 2 and 11-12, adds chart
By Alexandra Ulmer
RANCHO PALOS VERDES, California, Sept 13 (Reuters) - Donald Trump is not selling any of his majority stake in the company that owns Truth Social, and he will not leave the social media platform he created, the Republican U.S. presidential candidate told reporters on Friday.
Shares of Trump Media & Technology Group DJT.O surged as much as 30% following his comments before closing with a 12% gain for the day.
Trump owns about 57% of Trump Media, which saw its shares slump this week following his televised debate with Democratic rival Vice President Kamala Harris.
Friday's leap in the stock follows weeks of steady declines ahead of key dates this month when Trump and other company insiders will be allowed to sell their shares.
"No, I’m not selling," the former president said in answer to a question asked by Reuters. "I’m not leaving. I love it. I think it’s great."
Trump Media saw its value balloon to nearly $10 billion following its stock market listing in March. Trump Media's stock is popular among retail traders and is seen as a speculative bet on his chances of securing a second four-year term as president.
However, since its listing, Trump Media shares have lost most of their value, with losses accelerating in recent weeks after President Joe Biden gave up his reelection bid and Trump lost a lead in opinion polls ahead of the Nov. 5 presidential election.
According to provisions related to Trump Media's listing, Trump and other insiders will be allowed to sell stock beginning later this month, potentially flooding the market with additional shares.
If the stock price remains at or above $12 for any 20 trading days commencing Aug. 22, then Trump will be free to sell shares beginning on Sept. 20. Otherwise, he is eligible to sell shares beginning on Sept. 26.
The stock ended at $17.97 on Friday following Trump's comments, making his stake worth about $2 billion. Forbes values Trump's wealth at $3.7 billion.
Trump Media's revenue is equivalent to two Starbucks SBUX.O coffee shops, and strategists say its $3.6 billion stock market value is detached from its day-to-day business. It lost $869,900 in its most recent reported quarter ended June 30.
"There are no fundamentals behind this company. It doesn't have a path to profitability. It's just driven by commentary, and by hopes and dreams," said Dennis Dick, a trader at Triple D Trading.
The upcoming lock-up expiry related to Trump's shares is "something a lot of people on the street have been watching for weeks, if not since its inception now," said Jay Woods, chief global strategist at Freedom Capital Markets, ahead of Trump's statement that he would not sell.
A New York judge earlier this month delayed Trump's sentencing in his hush money criminal case to Nov. 12, after the election, months after the U.S. Supreme Court's landmark decision on presidential immunity, easing at least for the short term pressure over legal fees.
Trump Media bounces as Trump says no plan to sell https://reut.rs/3Zlmjp5
Reporting by Alexandra Ulmer; writing and additional reporting by Noel Randewich in Oakland, California; additional reporting by Medha Singh in Bengaluru; editing by Megan Davies, David Ljunggren and Jonathan Oatis
Activos relacionados
Últimas noticias
Descargo de responsabilidades: Cada una de las entidades de XM Group proporciona un servicio de solo ejecución y acceso a nuestra plataforma de trading online, permitiendo a una persona ver o usar el contenido disponible en o a través del sitio web, sin intención de cambiarlo ni ampliarlo. Dicho acceso y uso están sujetos en todo momento a: (i) Términos y Condiciones; (ii) Advertencias de riesgo; y (iii) Descargo completo de responsabilidades. Por lo tanto, dicho contenido se proporciona exclusivamente como información general. En particular, por favor tenga en cuenta que, los contenidos de nuestra plataforma de trading online no son ni solicitud ni una oferta para entrar a realizar transacciones en los mercados financieros. Operar en cualquier mercado financiero implica un nivel de riesgo significativo para su capital.
Todo el material publicado en nuestra plataforma de trading online tiene únicamente fines educativos/informativos y no contiene –y no debe considerarse que contenga– asesoramiento ni recomendaciones financieras, tributarias o de inversión, ni un registro de nuestros precios de trading, ni una oferta ni solicitud de transacción con instrumentos financieros ni promociones financieras no solicitadas.
Cualquier contenido de terceros, así como el contenido preparado por XM, como por ejemplo opiniones, noticias, investigaciones, análisis, precios, otras informaciones o enlaces a sitios de terceros que figuran en este sitio web se proporcionan “tal cual”, como comentarios generales del mercado y no constituyen un asesoramiento en materia de inversión. En la medida en que cualquier contenido se interprete como investigación de inversión, usted debe tener en cuenta y aceptar que dicho contenido no fue concebido ni elaborado de acuerdo con los requisitos legales diseñados para promover la independencia en materia de investigación de inversiones y, por tanto, se considera como una comunicación comercial en virtud de las leyes y regulaciones pertinentes. Por favor, asegúrese de haber leído y comprendido nuestro Aviso sobre investigación de inversión no independiente y advertencia de riesgo en relación con la información anterior, al que se puede acceder aquí.
