Trump Denies Selling Trump Media Shares, Calls for Investigation

On Friday, President-elect Donald Trump took to social media to address speculation about his financial interests in Trump Media & Technology Group, the parent company of Truth Social. In a post on Truth Social, Trump firmly denied any intention of selling his shares in the company, which he partly owns, dismissing rumors he claimed were fabricated by those looking to manipulate the market. Trump’s announcement led to an immediate 4% spike in the company’s share price, which had already surged by nearly 10% earlier in the day.

Trump’s statement came as he reacted to what he described as “fake, untrue, and probably illegal rumors and/or statements,” although he didn’t specify the sources or details of these alleged rumors. He suggested the falsehoods might be linked to market manipulators or short sellers, individuals who profit when a stock’s price falls. Trump called for an investigation into the individuals or groups responsible for these claims, urging authorities to take action against them.

As of 11 a.m. EST on Friday, Trump Media’s stock—traded as $DJT—stood at $30.13 per share. This rally marked a significant boost for Trump’s net worth, increasing it by $248 million and pushing his estimated total wealth to $5.5 billion. This new figure placed him at 607th on the global list of wealthiest individuals. Trump holds a roughly 57% stake in Trump Media, which translates to approximately 114,750,000 shares, giving him substantial influence within the company.

The company behind Truth Social, Trump Media & Technology Group, was founded by Trump to serve as a platform for alternative viewpoints after he was banned from mainstream social media outlets. It was officially taken public through a reverse merger with Digital World Acquisition Corp., a special-purpose acquisition company (SPAC), in March. Since its listing, the stock has experienced substantial volatility, with price fluctuations often driven by events tied to Trump’s political activities rather than the company’s financial health. Experts have described the company as a “meme stock,” a term for securities that derive much of their value from social media hype and external factors rather than financial performance.

The stock’s ups and downs have coincided with key moments in Trump’s recent campaign for the White House. Shares rallied following the first reported assassination attempt on Trump in July and spiked after a televised debate with President Joe Biden. However, the stock dipped following his debate with Vice President Kamala Harris in September. Observers believe Trump’s public statements and political visibility will continue to impact the stock, given his substantial ownership and the platform’s association with his brand.

Trump’s ability to sell his shares became possible in late September, following the expiration of a mandatory lockup period for executives and significant shareholders after Trump Media’s public listing. Many analysts speculated he might sell off some shares to capitalize on the stock’s value or to fund his campaign, a move that could have resulted in a decline in the share price due to increased availability of shares on the market. However, Trump announced at the time that he had no plans to sell, expressing his commitment to the company with the statement, “I’m not selling, I love it.”

The recent post marks Trump’s first text-based message on Truth Social since his election night victory over Vice President Kamala Harris, after which he had only posted electoral maps and newspaper clippings commemorating his win. In Friday’s message, Trump reiterated his dedication to Truth Social, calling it a key component of his campaign’s success and part of his “historic win.” His decision to address the rumors about his shares publicly highlights his continued investment in both the platform and its success.

Despite these public displays of confidence, Trump Media has reported financial challenges. In its third-quarter report released earlier this week, the company disclosed a $19 million net loss, which it attributed to legal expenses and efforts to expand its streaming services. The report also indicated a revenue decline, reflecting some of the operational hurdles the company faces. Nonetheless, Trump Media’s share price remained resilient, with its overall performance buoyed by Trump’s recent election win and his strong endorsement of the company.

Trump’s high-profile ownership and personal endorsement have amplified Truth Social’s visibility, attracting users seeking alternatives to mainstream social media networks. However, these same dynamics also subject the company to heightened volatility, as fluctuations in its stock price often correlate with Trump’s public appearances, statements, and political engagements. Given Trump’s substantial shareholding and his prominence as a political figure, the stock’s performance is expected to remain sensitive to his statements and market sentiment surrounding his political future.

The announcement regarding his stake in Trump Media underscores Trump’s willingness to directly address and counteract negative rumors he perceives as threatening to his interests. His call for an investigation into the sources of these rumors suggests he sees them as an attempt to undermine both his financial and public standing. Trump has previously shown a similar commitment to defending his business interests publicly, particularly when they intersect with his political persona.

For Truth Social, Trump’s involvement has been a double-edged sword, drawing in a dedicated user base aligned with his views but also tying the platform’s fate closely to his political fortunes. As Trump’s profile continues to rise following his election win, Truth Social’s growth potential may benefit from the increased attention. However, the company’s financial and operational challenges indicate that it will need more than Trump’s endorsement to secure long-term viability and growth. As Trump Media looks to expand its offerings, including its push into streaming services, the company faces the dual challenge of sustaining user engagement and achieving profitability.

In the coming months, as Trump’s policies and public profile continue to shape the trajectory of Truth Social, market analysts will be closely watching the stock’s performance. Trump’s decision not to sell his shares appears to be both a financial choice and a strategic one, underscoring his investment in Truth Social as a key element of his legacy. The platform’s future, therefore, remains closely intertwined with his political journey, as both his supporters and investors look to see how Truth Social will evolve under Trump’s ownership and vision.