Trump says he is not selling his shares of media company
Adds detail and comments from Trump about trading halts
By Alexandra Ulmer
RANCHO PALOS VERDES, California, Sept 13 (Reuters) - Republican presidential candidate Donald Trump said on Friday he will not sell his shares in the company that owns his Truth Social platform when limits on selling are lifted in the coming days, driving up the stock after a recent selloff.
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.
The Nasdaq stock exchange halted trading in Trump Media's shares for two five-minute periods following Trump's comments, a common occurrence during bouts of volatility.
"What right do they have to do this?," Trump later posted on Truth Social, while also threatening to move his company's listing to the New York Stock Exchange.
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, Jonathan Oatis and Deepa Babington
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Penafian: Entiti XM Group menyediakan perkhidmatan pelaksanaan sahaja dan akses ke Kemudahan Dagangan Atas Talian, yang membolehkan sesorang melihat dan/atau menggunakan kandungan yang ada di dalam atau melalui laman web, tidak bertujuan untuk mengubah atau memperluas, juga tidak mengubah atau mengembangkannya. Akses dan penggunaan tersebut tertakluk kepada: (i) Terma dan Syarat; (ii) Amaran Risiko; dan Penafian Penuh. Oleh itu, kandungan sedemikian disediakan tidak lebih dari sekadar maklumat umum. Terutamanya, perlu diketahui bahawa kandungan Kemudahan Dagangan Atas Talian bukan permintaan, atau tawaran untuk melakukan transaksi dalam pasaran kewangan. Berdagang dalam mana-mana pasaran kewangan melibatkan tahap risiko yang besar terhadap modal anda.
Semua bahan yang diterbitkan di Kemudahan Dagangan Atas Talian kami bertujuan hanya untuk tujuan pendidikan/maklumat dan tidak mengandungi – dan tidak boleh dianggap mengandungi nasihat kewangan, cukai pelaburan atau dagangan dan cadangan, atau rekod harga dagangan kami, atau tawaran, atau permintaan untuk suatu transaksi dalam sebarang instrumen kewangan atau promosi kewangan yang tidak diminta kepada anda.
Sebarang kandungan pihak ketiga serta kandungan yang disediakan oleh XM, seperti pendapat, berita, penyelidikan, analisis, harga, maklumat lain atau pautan ke laman web pihak ketiga yang terdapat dalam laman web ini disediakan berdasarkan "seadanya" sebagai ulasan pasaran umum dan bukanlah nasihat pelaburan. Sesuai dengan apa-apa kandungan yang ditafsir sebagai penyelidikan pelaburan, anda mestilah ambil perhatian dan menerima bahawa kandungan tersebut tidak bertujuan dan tidak sediakan berdasarkan keperluan undang-undang yang direka untuk mempromosikan penyelidikan pelaburan bebas dan oleh itu, ia dianggap sebagai komunikasi pemasaran di bawah peraturan dan undang-undang yang berkaitan. SIla pastikan bahawa anda telah membaca dan memahami Notifikasi mengenai Penyelidikan Pelaburan Bukan Bebas dan Amaran Risiko mengenai maklumat di atas yang boleh diakses di sini.
