Trump Media, the parent company of Truth Social, owned by former President Donald Trump, experienced a significant drop in its stock price, hitting an all-time low since its debut on the Nasdaq stock exchange in March. The drop in DJT shares followed a broader downturn in the market, with the Nasdaq, Dow Jones Industrial Average, and S&P 500 all trading lower on Tuesday.

The share price of Trump Media plummeted to $17.89 per share on Tuesday, marking the lowest level seen since the company began public trading after a merger. This decline surpassed the previous low of $19.38 per share, reached on August 28. Notably, the stock price has fallen approximately 77% from its peak of $79.38 per share on March 26, following Trump Media's merger with a publicly traded special purpose acquisition company.

The sharp decrease in Trump Media's stock price of over 8% coincided with a general market dip, particularly affecting technology companies. As of midday Tuesday, the Nasdaq was trading 2.7% lower, while both the Dow Jones Industrial Average and S&P 500 had declined over 1%.

However, it is important to note that market trends alone may not fully explain the slump in Trump Media's share price. The company's stock tends to trade more like a meme stock than a traditional investment, often fluctuating in response to the political fortunes of former President Donald Trump. For instance, the stock rallied after Trump survived an assassination attempt in July, aligning with a surge in voter support for his presidential bid and multiple high-profile endorsements.

Interestingly, this latest drop in Trump Media's stock comes just weeks before the expiration of a "lockup agreement" that prohibits major shareholders, including Trump himself, from selling their shares. As of Tuesday, Trump's stake, comprising nearly 59% of DJT's outstanding shares, was valued at over $2 billion. Although Trump has not indicated any intention to sell, speculation has arisen about his various campaign expenses and ongoing financial challenges resulting from lawsuits, potentially influencing his decision.

The lockup agreement is currently set to expire on September 25, but it may be moved up to as early as September 20 if the stock price remains above $12 per share for 20 trading days within the specified 30-trading-day period that began last Friday. While uncertainty surrounds Trump's plans, should he decide to cash in, it could exacerbate investors' doubts about the company, potentially triggering a broader selloff of the stock.

As this story continues to develop, stay tuned for updates regarding Trump Media's stock performance and the decisions of major shareholders.