President-elect Donald Trump’s social media stock, which had been plummeting after a brief surge following his election victory this week, got a significant boost with a single post on Truth Social—adding $500 million to his net worth in the process.
At Friday’s market opening, Trump Media and Technology Group’s shares had dropped 42% from their recent peak, likely due to a classic “buy the rumor, sell the news” dynamic.
Traders often buy stocks in anticipation of good news, only to sell off once the news hits, locking in their profits.
However, a half-hour into Friday’s trading, when the stock continued to dip, Trump posted a message on Truth Social denying rumors that he was considering selling his shares in the company: “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!”
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This statement sent the stock soaring, with shares climbing nearly 15% by Friday’s close. Trump, who is the company’s largest shareholder with 114.75 million shares, saw his stake increase in value from $3.2 billion to about $3.7 billion.
While Friday’s rise helped Trump Media’s stock end the week in the green, it only gained 4.4% over the past five days.
The stock has been highly volatile since Trump Media went public in March, often reflecting Trump’s political fortunes.
It spiked in value as his election prospects improved, but also saw sharp declines, including a 41% drop at the end of last week before a rebound on the eve of the election.
Truth Social, Trump’s social media platform, remains a tiny player compared to rivals like X, TikTok, and Instagram, with the company reporting less than $1 million in revenue last quarter.
Trump has repeatedly said he has no plans to sell his shares, though the company’s valuation is largely tied to his involvement.
The weekend’s post reassured traders that he intends to stay with the platform, even while serving as president.
However, Trump’s ability to benefit financially from his social media statements raises ethical questions, especially in light of his broader business dealings.
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