Trump Media shares experienced a notable increase on Tuesday following a substantial decline in recent days. The surge came after an extended downward trend coinciding with the expiration of lockup agreements, permitting company insiders, including majority owner Donald Trump, to commence selling their shares. While Trump reassured the public that he is holding onto his stake, Trump Media cautioned that other early investors were preparing to liquidate their positions.

The stock of Trump Media, which oversees Truth Social, saw a positive turn as it aimed to recover from a succession of losses linked to company insiders, including Donald Trump, gaining approval to sell their stock. Trading for DJT shares spiked by as much as 7% in heavy volume soon after the market opened. By the end of the trading day, the stock had risen by over 4%, signaling a potential reversal from six consecutive days of decline that had caused Trump Media stock to plummet by more than 32%.

Having gone public after finalizing a merger with a special purpose acquisition company in late March, Trump Media faced challenges marked by a steady decline. Initially soaring to $79.38 per share in its Nasdaq debut, the company's stock has since shed over 84% of its value. Despite this significant decline, Donald Trump's ownership of nearly 57% of the outstanding shares meant that his stake, valued at approximately $1.5 billion on Tuesday, still retained considerable worth. The expiration of lockup agreements on Thursday allowed Trump and other early investors to consider selling their shares, a move Trump has committed not to make. However, Trump Media cautioned that early investors were likely to start offloading their shares post-lockup expiration.

The lockup expiration, which stirred speculation about possible stock sell-offs by early investors, especially with Truth Social's limited revenue generation, could prompt disclosure requirements upon any sale. While Trump remained steadfast on retaining his stake, the likelihood of other investors cashing out post-lockup expiration remained uncertain as of Tuesday morning. Further developments regarding potential stock sales and their impact are anticipated to unfold, subject to monitoring by regulatory bodies such as the U.S. Securities and Exchange Commission as this story progresses.