United Atlantic Ventures LLC, a significant shareholder in Trump Media, recently made headlines as it sold nearly 11 million shares in the company, according to a regulatory filing on Thursday. The move drastically reduced UAV’s stake in Trump Media, leaving them with just 100 shares in the company that operates the Truth Social app.
Former “Apprentice” contestants Andrew Litinsky and Wes Moss, partners in UAV, had pitched the idea of a social media company to former President Donald Trump and co-founded the company with him in 2021. However, the relationship between Litinsky, Moss, and Trump soured, leading to legal disputes over their shares in the company.
Trump Media, which trades under the ticker DJT on the Nasdaq, saw a decrease in stock price to $13.98 per share following the news of UAV’s share sell-off. Despite a strong trading debut and a market capitalization exceeding $10 billion at one point, DJT’s value has plummeted, with the company’s market cap now standing below $2.8 billion.
Analysts have characterized DJT as a meme stock, with price volatility driven more by investor sentiments towards Trump, the majority shareholder and main attraction of Truth Social, rather than the company’s financial performance. Trump Media has reported significant net losses of around $344 million on revenues of less than $2 million in its last two quarterly earnings reports.
The sale of UAV’s shares, totaling between $128 million and $170 million based on DJT’s stock price fluctuations, raises questions about the future of Trump Media and its ability to sustain investor confidence amidst ongoing legal battles and financial challenges.
Industry experts caution that the rollercoaster ride of DJT stock reflects broader concerns about the sustainability of meme stocks and the need for companies to deliver tangible value beyond celebrity endorsements. The implications of UAV’s share sell-off on Trump Media’s long-term prospects remain uncertain, as the company navigates a tumultuous market environment and seeks to establish itself as a viable player in the social media landscape.
