Trump Media hopes for abrupt sell-off in post-embargo trading frenzy

Trump media Shares rose Tuesday morning as the company behind Truth Social appeared to emerge from a downward spiral, coinciding with company insiders, including majority owner Donald Trump, authorizing them to begin selling their shares.

DJT shares rose as much as 7% in brisk trading shortly after the market opened. At 1:00 p.m. ET, the price was already up more than 5%.

The rebound followed six consecutive days of red trading that sent Trump Media's share price falling more than 32 percent.

This slump was just the latest negative trend in the months-long slump at Trump Media, which went public in late March after a merger with a special purpose acquisition company.

Since rising rapidly to an intraday high of $79.38 per share on its Nasdaq debut, Trump Media stock has lost more than 84 percent of its value.

On Monday, the stock fell to its lowest level since before October 2021, when news of a planned merger between Trump Media and SPAC Digital World Acquisition Corp. first became public.

Trump currently owns nearly 57 percent of the company's outstanding shares, and although the value of his stake has dropped by billions of dollars in recent months, it was still worth nearly $1.5 billion as of Tuesday.

The Republican presidential candidate and other early investors in the company were prohibited from selling their shares until the lock-up period expired, which they did at the close of trading on Thursday.

The expiration of the lock-up period sparked waves of speculation about whether early investors would try to dump their shares in the company, whose only product, Truth Social, has barely generated any revenue in recent fiscal quarters.

Trump has vowed not to sell his stake.

However, Trump Media warned that other early investors planned to sell their shares immediately after the lock-up periods expired.

On Tuesday morning, it was unclear whether previously banned companies had attempted to sell since Thursday. In most cases, however, these sales would trigger disclosure obligations to the US Securities and Exchange Commission (SEC).

This is breaking news, please check back later for updates.