In a significant development for Trump Media & Technology Group, the social media business owned by former president Donald Trump, shares of the company soared on Friday following Trump's announcement that he has "absolutely no intention of selling" his stake in the Truth Social owner. The stock, traded under the ticker DJT - echoing Trump's initials - surged by $1.89 or 12%, reaching $17.97. This impressive rebound helped the company recover from a record low experienced on September 11, the day post his debate with Vice President Kamala Harris. During that time, investors seemed to have diminished confidence in his chances of winning the U.S. presidential election.

Trump Media & Technology Group has faced a period of struggle, enduring a prolonged slump that significantly decreased its valuation and led to a loss of approximately $4 billion from Trump's personal holdings in the company. This downward trend was further exacerbated by the impending expiration of a lock-up provision on September 19. This provision had previously restrained Trump and other insiders from selling their shares. Given that Trump owns a substantial 60% of the company's stock, any move on his part to sell even a portion of his stake could flood the market with available shares, potentially resulting in a decrease in its price.

Trump addressed the media during a press conference on Friday, attributing the slide in the stock price to the expiration of the lock-up provision. He emphasized that some individuals incorrectly believed that the reason for the decline was his intention to sell, clarifying that he has no plans to divest his stake. Lock-up provisions are a familiar restriction in the financial world, designed to prevent major investors from rapidly selling their shares soon after a company goes public. Such sales by insiders have the potential to trigger a decline in the company's share value.

Despite the positive momentum seen on Friday, the share price of Trump Media & Technology Group remains significantly lower than its previous peak in March, having depreciated by 77% to $79.38. It will be interesting to observe how the market responds in the coming days, given Trump's commitment to retaining his stake in the company.

The surge in Trump Media & Technology Group's stock reflects renewed investor confidence following Donald Trump's announcement of his steadfast commitment to keeping his stake intact. This development might signal an upward trend for the social media business, as it seeks to carve out its presence in an increasingly competitive digital landscape.