Shares of Trump Media and Technology Group experienced a significant rise on Friday after former President Donald Trump announced his intention to retain his stock in the company.
Trump Media, the parent company of Trump’s social media platform Truth Social, saw its stock surge after Trump confirmed at his California golf club that he would keep his shares and remain active on the platform.
Trump stated, “No, I’m not selling. I’m not leaving. I love it. I think it’s great.” Following his announcement, the company’s stock climbed as much as 30% before closing with a 12% gain for the day.
Trump holds approximately 57% of Trump Media, which suffered a decline in shares earlier in the week following his televised debate with Democratic rival Vice President Kamala Harris.
The increased stock price on Friday comes after a period of steady losses, exacerbated by the upcoming dates when Trump and other insiders will have the ability to sell their shares.
The stock fundamentals of Trump Media listed under the ticker DJT showed the last recorded price at $16.07 with a decrease of 3.63%.
Trump Media and Technology Group’s value soared to nearly $10 billion after its stock market listing in March. The stock has been popular among retail traders, seen as a speculative investment on Trump’s potential return to the presidency for a second term.
However, shares have lost much of their value since the listing, with the decline intensifying in recent weeks after President Biden announced he would not seek re-election, and Trump saw a decrease in his lead in opinion polls ahead of the November 5 presidential election.
As stipulated in the company’s listing provisions, Trump and other insiders will be permitted to sell stock later this month, which might lead to an influx of shares into the market.
On Friday, the stock closed at $17.97 following Trump’s remarks, valuing his stake at around $2 billion. Trump’s total wealth is estimated by Forbes to be $3.7 billion.
Reuters contributed to this report.