Trump Media & Technology Group’s shares showed an upward trend after the US President-elect Donald Trump announced his commitment to his stake in the company, which owns the Truth Social platform.
Taking to his Truth Social account, Trump dismissed what he called rumors about plans to sell shares, following a notable drop in the stock’s value.
“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,” Trump wrote on X.
“THOSE RUMORS OR STATEMENTS ARE FALSE. I HAVE NO INTENTION OF SELLING!,” he added.
Trump maintains ownership of nearly 115 million shares, representing approximately 53 per cent of Trump Media. As of Friday, his portion was valued at roughly £3.7 billion, whilst the company’s total market value stood at about £7 billion.
The company’s shares concluded trading at $31.91, marking a 15.2 per cent increase, and reached a peak of $33.03 during the session. The trading was temporarily suspended due to volatility following Trump’s statement.
Earlier on Thursday, the company’s shares declined as speculative investments on Trump’s potential second term presidency diminished, following his win against Democrat Kamala Harris.
The shares had increased by 5.9 per cent on Wednesday after Tuesday’s Election Day, news agency Reuters reported.
The stock’s 30-day implied volatility, which measures expected near-term price movements through options, has decreased from its peak of 300 per cent before the election. However, according to Trade Alert data, it remains notably high at about 200 per cent.
Despite Trump and Vice President Harris showing similar standings in pre-election opinion surveys, online betting platforms showed stronger support for the former president. This led investors to focus on securities they believed would perform better under his leadership.
This investment pattern led to Trump Media shares increasing by approximately 200 per cent during the six weeks preceding the election.
In September, Trump had already declared his intention to retain his company shares and continue his involvement with the social media platform he established.