Why Trump Media Stock Plummeted This Week

Core Viewpoint - Trump Media stock has experienced significant sell-offs following the 2024 presidential election, primarily driven by insider selling and profit-taking by investors [1][2][3]. Group 1: Insider Selling - Several insiders at Trump Media sold shares after Donald Trump's election victory, contributing to a decline in stock price [3]. - CFO Phillip Juhan sold 384,000 shares, Director Eric Swider sold approximately 136,000 shares, and General Counsel Scott Glabe sold around 16,000 shares, totaling about $16 million in sales [3]. Group 2: Donald Trump's Position - Donald Trump remains the largest shareholder of Trump Media and has not sold any shares, indicating no immediate plans to do so [4]. - Speculation exists regarding potential stock sales by Trump, which could negatively impact the company's share price [5]. Group 3: Company Valuation and Performance - Trump Media is valued at approximately $6.1 billion, but it has generated only $2.61 million in sales over the first three quarters of the year, suggesting a high valuation relative to its performance [6]. - The company is still in the early stages of scaling, and while sales momentum is expected to increase, the current stock price appears expensive compared to recent business results [6].