Truth Social Hits All-Time Low as CEO Sells His Crashing Stock

The big question: will Trump himself pull the rug as soon as he's legally allowed to?

All-Time Low

The share price of former president Donald Trump's Truth Social meme stock has plummeted to a new low after several key executives started offloading their holdings.

Around midday Tuesday, shares dropped below $18, setting a new record low since the company began trading after merging with a blank check acquisition company in March. Minutes after trading opened on Wednesday, it hit new lows again.

The crash shouldn't come as much of a surprise, as it wouldn't be surprising if Trump himself pulls the rug on investors within just weeks. The six-month lockup period determined by the Securities and Exchange Commission is almost over, opening the door for the former president to sell his own shares.

And that could be a make-or-break moment for Truth Social's parent company Trump Media. Trump owns 114 million shares — roughly 60 percent of the company's outstanding stock — so if he cashes out, it would be yet another major vote of no confidence.

Cash Grab

The current selloff is also likely being accelerated by a number of executives, including CEO Devin Nunes and COO Andrew Northwall and CFO and treasurer Juhan Phillip, selling millions of dollars worth of company shares.

The company has burned through many millions of dollars in cash, despite only making a measly $4.1 million in all of 2023. In the last quarter alone, the company reported a net loss of $16.4 million.

Even with shares sliding, the company is still being valued at billions of dollars, making it astronomically overvalued by any standard calculation.

However, with executives — and possibly Trump himself — looking to jump ship, Trump Media could look like a very different company within just weeks.

Given the broad failure of Truth Social to turn into any form of viable product — especially since Trump has taken up tweeting on X-formerly-Twitter again — the company was arguably never anything more than a thinly veiled attempt by Trump to raise some much-needed cash to cover lawsuit- and election campaign-related expenses.

Business failures aside, Trump could still have the last laugh. The former reality TV host could still rake in over $2 billion by offloading his shares, bookending a sketchy and blatant cash grab.

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