Former President Donald Trump on Friday expressed frustration over the Nasdaq stock exchange's temporary halting of trading in his media company's shares, suggesting he may consider moving the listing to the New York Stock Exchange. The stock of Trump Media & Technology Group (TMTG), which trades under the ticker DJT, experienced two brief trading halts due to volatility following Trump's remarks about retaining his stake in the company.
In a post on his social media platform, Truth Social, Trump questioned Nasdaq's actions: "Why is NASDAQ halting the sale of DJT? What right do they have to do this?" He further accused the exchange of "taking orders" from the Securities and Exchange Commission (SEC), alleging political motivations behind the trading interruptions. "I am going to hold NASDAQ, and maybe the SEC, liable for doing what they are doing," Trump wrote. "If they do it again, we will move the stock to the New York Stock Exchange."
Earlier in the day, Trump told reporters in California that he had no intention of selling his shares in TMTG despite recent declines in the stock's value. "No, I'm not selling," he said. "I'm not leaving. I love it. I think it's great." His comments came amid speculation that he might divest his holdings, which had been weighing on investor sentiment.
Shares of TMTG surged more than 25% immediately after Trump's declaration before paring gains to close up 11.8% at $17.97 per share. The stock had been under pressure, hitting a record low of $16.08 on Thursday following a presidential debate between Trump and Vice President Kamala Harris. The decline has erased approximately $4 billion from Trump's paper holdings, with the stock down about 73% from its March highs.
Trading in DJT was halted twice for five-minute intervals, a common practice during periods of heightened volatility. Reuters reported that the halts occurred after Trump's statements about retaining his stake. Nasdaq did not immediately respond to requests for comment.
Trump owns approximately 57% of TMTG, equating to about 115 million shares valued at over $2 billion as of Friday. According to provisions related to the company's listing, Trump and other insiders will be permitted to sell stock later this month, following the expiration of a six-month lockup period.
Market analysts suggest that Trump's decision to hold onto his shares may alleviate investor concerns about a potential selloff flooding the market and driving down the stock price. "The possibility of former President Trump selling some or many of his 114.75 million shares in Trump Media starting later this month has been depressing the stock price," said Jay Ritter, a finance professor at the University of Florida. "His announcement today lifted this concern, resulting in the stock jumping."
However, Ritter cautioned that the long-term outlook remains challenging. "The stock is substantially overvalued. The downward trend will be slowed, however, by his decision not to sell shares in the near future," he added.
Some industry observers believe that Trump's personal stake in the company is closely tied to his political ambitions. "I don't think he sells as long as he wins the election. His ego won't let him," said Matthew Tuttle, CEO of Tuttle Capital Management. "The DJT stock price is like the crowd size at his rallies; he knows that if he sells, the stock tanks and he doesn't want that. If he loses, I think he will be forced to sell."
TMTG, the parent company of Truth Social, went public in March through a merger with Digital World Acquisition Group, a special purpose acquisition company. The company's valuation has been buoyed by Trump's popularity and the support of his followers, who have viewed the stock as a proxy for his political fortunes.
Despite Trump's assurances, the company's stock has faced a steady decline, exacerbated by recent political developments. The steep drop accelerated after Vice President Harris replaced President Joe Biden on the Democratic ticket, leading to increased uncertainty among investors.
Even if Trump chooses not to sell his shares, financial experts note that he could leverage his holdings as collateral for loans. However, "a bank would give only a low loan-to-value ratio," Ritter explained, highlighting the challenges Trump may face in accessing liquidity without impacting the stock price.
Trump's public criticism of Nasdaq and the SEC underscores ongoing tensions between the former president and regulatory bodies. His allegations of political interference echo previous disputes he has had with financial regulators. The SEC did not immediately respond to requests for comment.
As the situation unfolds, investors and political analysts alike will be watching closely to see how Trump's decisions regarding his media company will impact both his financial standing and his potential bid for re-election. "Trump Media trades on its namesake's popularity and at an inflated valuation compared to other social media companies by conventional Wall Street standards," said Ritter. "Investors have approached the stock as a way to bet on Trump's odds of retaking the White House."
