| Advertisement |
March 29 (UPI) -- The stock value of Reddit and Donald Tump's Truth Social took a hit by the end of trading on Thursday ahead of Easter weekend and the NYSE's Friday closure. Trump Media & Technology Group's "Truth Social" -- with a valuation of over $8 billion which has financial experts skeptical for multiple reasons -- began trading on Tuesday at $70.90 and stock prices went as high as $79.38. But prices went down Thursday by over $4 a share to $61.96 on Nasdaq.
Advertisement
Stock shares of Reddit went down by nearly 25% in two days to $49.30 at the close of business on Thursday, which was below its closing price on its first day of trading on the New York Stock Exchange the week prior.
This week, both Reddit's CEO and COO sold off 500,000 and 514,000 of their shares, respectively.
An expert questioned why the two executives would sell their shares "if the prospects are so bright," but said there is "always a bit of a disconnect, because the purpose of bringing the company public is twofold."
"It's not just to generate liquidity for the company itself so that it can expand and grow," Ben Silverman, vice president of research at Verity, told CNBC. "In these situations, it often allows insiders to cash out to generate liquidity, and that's something executives have to consider here."
Some experts in the finance industry expect the Trump stock -- under the Nasdaq ticker "DJT" -- to remain unpredictably volatile for Truth Social, a company which had a revenue loss of $49 million with only over $3 million in the first nine months of 2023.
Truth Social's market value is over 2,000 times its annual revenue versus Reddit at over 10 times.
