SEC's Approval of Additional Shares Causes Significant Decline in Trump Media Stock Value

New York, New York, USA United States of America
CEO Devin Nunes expresses optimism about company's future prospects despite recent setback
SEC's approval of additional shares causes significant decline in Trump Media stock value
Trump owns close to 65% of TMTG and had an additional 36 million shares
Up to 14,375,000 additional shares may be issued upon warrant exercise
SEC's Approval of Additional Shares Causes Significant Decline in Trump Media Stock Value

Trump Media, the social media company founded by former President Donald Trump, experienced a significant decline in its stock value following the SEC's declaration of effectiveness for the registration of additional shares. According to multiple reports, up to 14,375,000 additional shares may be issued upon warrant exercise. This news led to a plunge in the stock price for both Trump Media and Truth Social app.

The SEC's authorization allows early investors in Trump Media to exercise public warrants they hold in the company. The prospect of these new shares being released into the market caused concern among existing shareholders, leading to a significant decline in value. The SEC filing also noted that up to $247 million in proceeds could be received by Trump Media from warrant exercises and the release of restricted cash.

Donald Trump, who owns close to 65% of TMTG and had an additional 36 million shares, saw his total stock holdings exceeding 114.75 million shares. The decline in value resulted in a loss of over $267 million for the former president.

Trump Media's CEO, Devin Nunes, expressed optimism about the company's future prospects despite the recent setback. He stated that with the S-1 now declared effective, Trump Media would be well positioned to pursue TV streaming and other enhancements to its platform. Additionally, TMTG was expected to have approximately 620,000 retail shareholders supporting its vision.

However, Trump Media executives face challenges in communicating effectively with investors and the media to prevent further weakness in the stock price. The upcoming August earnings release is critical for addressing investor concerns and explaining the benefits of staying invested as newly registered shares become salable.


Article Image
Article Image
Article Image
Article Image
Article Image
Article Image
Article Image
Article Image

Confidence

85%

Doubts
  • Exact number of new shares that will be issued is uncertain
  • It's unclear how much of a negative impact the new shares will have on Trump's total stock holdings

Sources

94%

The overall score is a weighted number that takes into account conflict of interest, bias, deception and other practices that undermine the credibility of the source. It is calculated as:
(Site Conflicts Of Interest + Author Conflicts Of Interest) / 2.0 * 0.2 + ArticleBiasScore * 0.20 + UniquePointsScore * 0.05 + DeceptionScore * 0.20 + ReadabilityScore * 0.05 + FallacyScore * 0.20

A score that takes into consideration the content for flow, interruptions with ads, and overt search engine optimization techniques that makes the content hard to understand

Trump Media shares plunge 17% with newly available DJT shares set to dilute stock value

CNBC News Dan Mangan Tuesday, 18 June 2024 20:44
  • Unique Points
    • SEC declares effectiveness of Trump Media’s registration of additional shares
    • Up to 14,375,000 additional shares may be issued upon warrant exercise
    • Trump Media may receive up to $247 million in proceeds from warrant exercises and release of restricted cash
  • Accuracy
    No Contradictions at Time Of Publication
  • Deception (100%)
    None Found At Time Of Publication
  • Fallacies (85%)
    The article contains an appeal to authority fallacy in the form of a quote from Trump Media CEO Devin Nunes. Additionally, there is a dichotomous depiction by stating that existing shareholders could still experience a positive rate of return despite the stock price decline.
    • . . .Trump Media said that existing shareholders who sold at a lower prices after the registration "could still "experience a positive rate of return on the shares ... due to the lower price per share" when they purchased them.
    • Trump Media CEO Devin Nunes, in a statement said, "Today marks another milestone for Truth Social."
  • Bias (100%)
    None Found At Time Of Publication
  • Site Conflicts Of Interest (100%)
    None Found At Time Of Publication
  • Author Conflicts Of Interest (100%)
    None Found At Time Of Publication

86%

The overall score is a weighted number that takes into account conflict of interest, bias, deception and other practices that undermine the credibility of the source. It is calculated as:
(Site Conflicts Of Interest + Author Conflicts Of Interest) / 2.0 * 0.2 + ArticleBiasScore * 0.20 + UniquePointsScore * 0.05 + DeceptionScore * 0.20 + ReadabilityScore * 0.05 + FallacyScore * 0.20

A score that takes into consideration the content for flow, interruptions with ads, and overt search engine optimization techniques that makes the content hard to understand

Trump Media Stock (DJT) - Deteriorating At The Wrong Time

Forbes Magazine John S. Tuesday, 18 June 2024 00:00
  • Unique Points
    • Trump Media executives need to communicate effectively with investors, analysts, and the media to prevent further weakness.
  • Accuracy
    • The SEC is reviewing the registration of all outstanding shares not yet registered, which amounts to three times the currently registered shares.
  • Deception (70%)
    The article contains selective reporting and emotional manipulation. The author focuses on the negative aspects of Trump Media's stock performance and uses emotive language to create a sense of urgency and fear. He also fails to provide any counter-arguments or perspectives that might mitigate the perceived negatives, further skewing the reader's perception. Additionally, he quotes himself multiple times without disclosing it as such, which can be misleading.
    • A falling stock can undermine company plans getty
    • The 2024 technical picture is worsening 2024 daily graph through June 18
    • The first issue is near: The registration of all outstanding shares not yet registered. The amount is three times the currently registered shares: 133 million vs. 44 million, equaling a total of 177 million.
    • Without regular, meaningful communications, knowledgeable investors won’t buy, analysts won’t recommend, and the media won’t report.
  • Fallacies (100%)
    None Found At Time Of Publication
  • Bias (100%)
    None Found At Time Of Publication
  • Site Conflicts Of Interest (100%)
    None Found At Time Of Publication
  • Author Conflicts Of Interest (100%)
    None Found At Time Of Publication

88%

The overall score is a weighted number that takes into account conflict of interest, bias, deception and other practices that undermine the credibility of the source. It is calculated as:
(Site Conflicts Of Interest + Author Conflicts Of Interest) / 2.0 * 0.2 + ArticleBiasScore * 0.20 + UniquePointsScore * 0.05 + DeceptionScore * 0.20 + ReadabilityScore * 0.05 + FallacyScore * 0.20

A score that takes into consideration the content for flow, interruptions with ads, and overt search engine optimization techniques that makes the content hard to understand

Donald Trump Loses $267 Million Over Weekend as Truth Stock Plunges

Newsweek LLC Kate Plummer Tuesday, 18 June 2024 13:27
  • Unique Points
    • Donald Trump lost over $267 million due to the decline in value of Truth Social shares.
    • Donald Trump owns close to 65% of TMTG and had an additional 36 million shares, bringing his total stock to over 114.75 million shares.
  • Accuracy
    • Truth Social reported a net loss of $327.6 million for the first quarter of 2024.
  • Deception (100%)
    None Found At Time Of Publication
  • Fallacies (85%)
    The author makes an inflammatory statement towards Newsweek in the article which is a form of Ad Hominem fallacy. The author also uses an appeal to emotion when stating that Trump has lost 'some $267,367,500 million this weekend' without providing any context or evidence to support this claim.
    • > From stories like this, which have the depth of a third-grade book report, to your bizarre tendency to steal your material from tabloid publications like RawStory, Newsweek constantly demonstrates the reason why it has no readers.
    • , The shares were highly volatile and erratic. The 52-week high for the stock is $79.38, while the 52-week low is $22.55.
    • The author states that Trump has lost 'some $267,367,500 million this weekend' without providing any evidence or context to support this claim.
  • Bias (95%)
    The author, Kate Plummer, uses language that depicts the decline in Trump's Truth Social stock as a loss for Trump himself. This is an example of monetary bias.
    • Donald Trump has lost some $267,367,500 million this weekend from the declining value of shares in his social media company.
      • With the number of shares he owns and the decline in the share value, Trump is down by over $267 million.
      • Site Conflicts Of Interest (100%)
        None Found At Time Of Publication
      • Author Conflicts Of Interest (100%)
        None Found At Time Of Publication