President-elect Donald J. Trump made a clear announcement on Friday, squashing rumors about his plan to sell his social media company, Truth Social.
According to Breitbart, Donald J. Trump declared he won’t be selling shares in Truth Social, causing the company's stock to surge.
After President-elect Trump denied rumors claiming he intended to sell shares of Truth Social, owned by Trump Media & Technology Group ($DJT), its stock experienced a notable increase. This rise occurred on the heels of his clarification, which was communicated via a post on the platform itself. Trump’s post at 10:05 a.m. dismissed the speculations as "fake, untrue, and probably illegal," denying any plans to offload his shares. Shortly after this, the stock price showed a substantial hike, peaking at nearly $32.00 within minutes.
Shares initially valued at $28.76 at 10:03 a.m., had escalated to nearly $32.00 by 10:12 a.m. This rapid increase appeared immediately following Trump's public refutation of the rumors. The stock had faced a significant downturn of nearly 23% on Thursday, following an impressive rally the day before due to Trump's electoral victory over Kamala Harris. Alexandra Canal, a financial analyst, noted the stock's volatility over the week.
Truth Social has been pivotal for Donald Trump's communication, especially after his removal from other social media platforms in the wake of the 2020 election. This platform has allowed him to circumvent mainstream news media and traditional tech platforms, conveying his messages directly to the public.
Before sharing the quote from Donald Trump about the false rumors, it is significant to note the platform’s critical role in his recent electoral success. Trump emphasized the integral role of Truth Social in both his business undertakings and political achievements.
President-elect Trump further requested an investigation into those spreading these rumors:
"There are fake, untrue, and probably illegal rumors, and/or statements made by, perhaps, market manipulators or short sellers, that I am interested in selling shares of Truth. THOSE RUMORS OR STATEMENTS ARE FALSE. I HAVE NO INTENTION OF SELLING!
I hereby request that the people who have set off these fake rumors or statements, and who may have done so in the past, be immediately investigated by the appropriate authorities. Truth is an important part of our historic win, and I deeply believe in it."
Despite the gains on Friday, the company's stock still displayed a slight overall decrease for the week. However, over the past month, the stock showcased a robust rally, increasing more than 60% in value.
Before the rally began, the stock hit its lowest point post-IPO in September, following the end of a well-publicized lock-up period. This keep added to the stock’s ongoing tumult but delineated the opportunity for growth opportunities as seen in subsequent weeks.
The stock market's response was likely influenced by investor sentiments that align with Trump’s future business strategies being closely tied to political maneuvers. This is a continuation of trends seen in how political events and associated public figures impact market movements significantly.
As it stands, Truth Social remains a primary vehicle for Trump's messaging, which has broad implications for the media landscape and political communication. His assertion of no sale underlines confidence not just in the platform's future but also in the financial paths he expects it to explore.
In conclusion, after President-elect Donald J. Trump's clarification regarding Truth Social, the stock stabilized despite previous fluctuations. His commitment to the platform was reaffirmed amidst its growth in terms of usage and stock value, signifying a positive outlook on its future.
