So for a while, about the only thing that kept social media stock Truth Social (DJT) going was that one of its key shareholders, President Donald Trump, was not planning to sell shares. The news that his trust was looking to do just that, meanwhile, proved a harsh blow to investors, who abandoned ship in droves and sent shares sliding nearly 6% in Wednesday afternoon’s trading.
A recent filing from Truth Social’s parent company revealed that the company may plan to sell 8.4 million shares of Truth Social stock, which were connected to “…existing warrants issued during the IPO,” reports noted. Plus, there was the potential that “…insiders and major stakeholders…” were considering sales of their own, with potentially 134 million shares up for sale over the course of an indeterminate period. The filings would only say “…from time to time.”
And that 134 million also seems to include the 114 million shares in the Donald J. Trump Revocable Trust, which was reportedly set up back in 2014, ahead of his first run for president. This has some crying foul, but it is important to note that President Trump said he did not plan to sell his stake in Truth Social. However, it is his son, Donald Trump Jr., that is in charge of the trust.
Surging Net Worth
This revelation comes among another report that revealed President Trump’s current net worth, which stands at $5.1 billion right now. That figure doubled in just the last year, buoyed by cryptocurrency and the rise in Truth Social stock. The launch of TrumpCoin did well, as did the acquisition of controlliing interest in World Liberty Financial, reports noted.
This is leaving some questioning if a government comprised so thoroughly of billionaires is a good move for America, and for the world at large. That matter is largely left to personal interpretation, but for many, the concern is there. There are other explanations as well; remember that just recently, Truth Social made a move to get on Roku (ROKU), which opened up its streaming offerings to a larger pool of viewers.
Is Truth Social Stock a Good Buy Right Now?
Turning to Wall Street, no analysts currently hold a rating on DJT stock. So we turn to the last five days of trading instead. As it turns out, DJT stock is down 3.99% for the period. Truth Social shares have traded erratically throughout the last five days, with a slight drop, a plateau, a more pronounced drop, a full rally that brought it to its highest point in the period, and then another pronounced drop.
