Trump Media Shares Experience Volatility Amid Recent Events #

Shares of the social media company associated with the former president are experiencing another period of turbulence following a recent security incident.

The company’s stock initially climbed 5% in premarket trading early Monday but later dropped 4% in late morning trading. This reaction represents a more muted response compared to a similar incident in July, where the stock saw a significant surge, closing up by 31%.

Experts have likened the company’s stock to a meme stock, noting that it tends to trade based on sentiment and hype rather than fundamentals. Despite generating little revenue, the conservative social media company continues to be valued in the billions of dollars.

The former president himself contributed to the recent market volatility on Friday when he declared he would not sell his shares in the company. This announcement led to a significant spike in the stock price, rising as much as 30% and triggering trading halts.

Lock-up restrictions preventing insiders from selling shares are set to expire soon, an event that has been influencing the stock’s performance in recent weeks.

The former president expressed dissatisfaction with the trading halts, suggesting potential misconduct. However, such pauses are standard practice across the US stock market, implemented by federal regulators to provide cooling-off periods during rapid price fluctuations.

Despite recent volatility, investors who bought shares when the company went public in March remain at a significant loss. The stock is down approximately 74% from its March 27 closing high of $66.22.