| | | "Truth social is a niche site that only attracts die hard Trump supporters."
WTF.. I do not see any mention of anyone having bought any DJT stock in S.I. Search
This shit stock is going to unravel sooner than I expected.
DJT Stock Slips. Truth Social Co-Founders Are Challenging Trump Media Lockup.
Trump Media & Technology Group stock was edging down on Wednesday. The company’s latest challenge is a bid by two co-founders of its Truth Social platform to be allowed to sell their stock in their company before the lockup period expires.
By
Adam Clark
Updated April 10, 2024 9:39 am ET / Original April 10, 2024 5:10 am ET
Former U.S. President Donald Trump’s net worth was boosted by billions on paper following the listing of Trump Media & Technology Group.
CHIP SOMODEVILLA/GETTY IMAGES
Trump Media & Technology Group stock was edging down on Wednesday. The company’s latest challenge is a bid by two co-founders of its Truth Social platform to be allowed to sell their stock in their company before the lockup period expires.
Trump Media shares were down 1.3% at $37.00 in premarket trading. The stock closed up 0.8% at $37.47 on Tuesday.
The closing price valued former U.S. President Donald Trump’s 57% stake in the company at around $2.94 billion. It’s a huge valuation overall for a company that generated revenue of $4.1 million for 2023 and posted a net loss of $58.2 million.
Truth Social has positioned itself as a conservative alternative to platforms such as Meta Platforms ’ Facebook or social-media company Reddit but its user numbers are a fraction of its peers.
Two co-founders of Truth Social, Wesley Moss and Andrew Litinsky, filed a complaint in February that sought to prevent Trump from taking steps that would reduce their combined 8.6% stake in Trump Media. Meanwhile, Trump is suing Moss and Litinsky, arguing they should forfeit their stock in the company because they set it up improperly.
In the latest development Moss and Litinsky have now amended their lawsuit to also seek to be able to sell their shares in Trump Media ahead of the expiration of a six-month lockup period.
The move could be significant, as more shares coming to the market, should their litigation be successful, would make it easier for short sellers to borrow the stock, hoping to profit from a fall in its price.
Trump is also barred from selling Trump Media shares until a six-month lockup period expires, but the former president could seek a waiver from the company’s board, which includes one of his sons and several former members of his administration.
Write to Adam Clark at adam.clark@barrons.com |
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