Trump Media Shares Rebound

Shares of former U.S. President Donald Trump’s media company rose over 6% on Wednesday, bouncing back from all-time lows after insider selling restrictions expired last week.

The stock of Trump Media & Technology Group, in which the Republican presidential nominee holds a 57% stake, surged by 12%, resulting in a market capitalization of $2.7 billion.

Following the end of insider selling restrictions, the stock initially dropped to its lowest point since its debut in March. It was last priced at $13.64, having peaked at $14.48 earlier on Wednesday.

Trump’s stake in the company is now valued at approximately $1.6 billion. He stated on Sept. 13 that he does not intend to sell his shares, focusing instead on other major stakeholders who might cash out.

Since the lifting of insider selling restrictions, daily trading volume for Trump Media shares averaged $275 million, surpassing September’s average of $188 million, with no insiders reporting share sales.

At one point, the company’s value soared to nearly $10 billion after its Wall Street debut, driven by retail traders betting on Trump’s potential return to the presidency. However, the value has declined over time, particularly after President Biden ceased his reelection bid in July.

United Atlantic Ventures and Patrick Orlando, who helped merge the blank-check company with Trump Media, collectively own around 11% of the company’s shares.

Trump Media is currently facing financial struggles with revenue comparable to that of two Starbucks coffee shops, and its stock trades at nearly 700 times its revenue, far higher than the evaluation of leading tech companies like Nvidia at 31 times its revenue.