Trump Media stock teeters after guilty verdict sell-off

Shares of Trump Media erased their early gains Tuesday morning, putting the brakes on a stock surge that reversed some of the losses from a lengthy sell-off following former President Donald Trump‘s criminal conviction in New York.

The stock price of the company behind Truth Social shot up as much as 11% as markets opened, but flattened out by 11:15 a.m. ET, with shares trading around $34.50.

The stock, which trades on the Nasdaq as DJT, soared 21% on Monday, adding hundreds of millions of dollars to the company’s market capitalization — and the on-paper net worth of Trump, who owns nearly a 65% stake in Trump Media.

The presumptive Republican presidential nominee cannot sell any of his shares until late September, when a postmerger lock-up period expires.

The company’s stock price closed more than 3% higher on Friday, halting a weekslong sell-off that began after a Manhattan jury found Trump guilty of 34 felony counts of falsifying business records.

The stock declined 46% between that May 30 verdict and the end of last week.

While it is unclear if the verdict caused the stock to tumble, the company has said in regulatory filings that unfavorable outcomes for Trump in his numerous legal battles “could negatively impact TMTG and its Truth Social platform.”

The downturn also coincided with the U.S. Securities and Exchange Commission clearing Trump Media’s registration of additional shares on June 18 after the bell.

The registration let early investors resell certain shares and exercise previously issued warrants. Stock warrants give their holder the ability to buy shares at a predetermined price within a certain time frame.

Trump Media said Friday that it expected to receive more than $69.4 million in proceeds from the warrants exercised on Thursday and Friday alone.

This is developing news. Please check back for updates.