Trump Media stock down 6% on Wed: here’s why

Trump Media’s stock declined on Wednesday after the company disclosed in a securities filing that insiders, including the Donald J Trump Revocable Trust, could sell a significant number of shares.

The filing, dated April 1, outlined the potential sale of roughly 8.4 million shares tied to existing warrants from the company’s IPO.

The company also stated that insiders and major stakeholders could sell up to approximately 134 million shares “from time to time,” including over 114 million shares owned by the Donald J. Trump Revocable Trust.

The prospectus explicitly warned that such sales—or even the perception of them—could drive down the stock price.

Shares fell about 6% in morning trading, adding to the volatility the stock has faced since going public via a special purpose acquisition company last year.

The stock has declined roughly 70% from its post-merger highs. It is down over 40% on a year-to-date basis.

Trump has earlier stated he does not intend to sell his stake in the company; however, his son, Donald Trump Jr, now oversees the revocable trust.

At Tuesday’s close price of $20.26, Trump’s registered stake carried an estimated value of $2.3 billion.

Trump Media issues clarification

Despite the filing, the company issued a statement pushing back against speculation that insider sales were imminent, noting that the shares in question had already been registered in June 2024 under an S-1 form.

Wednesday’s filing simply re-registered them under an S-3 form. The company also emphasized that no current selling window exists for affiliates.

The company stated that “legacy media outlets are spreading a fake story suggesting that a TMTG filing today is paving the way for the Trump trust to sell its shares in TMTG.”

It further added:

To be clear, these shares were already registered last June on an S-1 form, and today TMTG submitted a routine filing that re-registers them on an S-3 form in order to keep the company’s filings effective. In fact, there currently is no open window for any affiliate to sell shares.”

Even as the stock remains volatile, Trump Media’s valuation remains high compared to its modest revenue.

Shares were trading around $19 on Wednesday morning, valuing the media company at over $4.23 billion on paper.

In 2024, Trump Media generated less than $4 million in revenue while reporting a net loss of approximately $401 million.

The company previously announced plans to expand into financial services, but its core business, primarily centered around Truth Social, remains significantly smaller than other publicly traded social media firms.

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