Trump Media Co-Founder Cashes Out of $DJT for $100 Million... (Eh Tu Brute?)

I’m not saying you should start selling off your Trump Media stock just because Andrew Litinsky (ex-“The Apprentice” contestant, LOL) just dumped nearly his entire stake. But, uh, maybe keep an eye on things? 

(Source: Giphy) 

In short, our guy Litinsky, who’s also running United Atlantic Ventures (UAV), slashed his holdings from a chunky 7.525 million shares down to a measly 100. Yeah, you read that right—100.

The SEC filing dropped on Thursday, and let’s just say it got people talking.

(Source: CBS) 

This move comes right after the expiration of insider trading restrictions that were tied to Trump Media’s SPAC-fueled stock market debut back in March. And while the filing didn’t give us the juicy details on when and how much Litinsky sold for, a little napkin math tells us he likely pocketed somewhere between $88 million and $102 million. So basically a nice little “treat yo self” dumping, amirite? 

(Source: Giphy) 

What’s interesting though, is that  Litinsky is an insider, a co-founder of Trump Media, for crying out loud. The guy helped pitch the whole “let’s create a social media empire for Trump” idea to the man himself. So when someone like Litinsky pulls the ejection lever, you gotta ask… what does he know that we don’t?

Especially considering that the “Chefs Kiss” comes down to the timing. You see, insider restrictions were lifted on September 20th, and Litinsky wasted zero time liquidating. Which isn’t necessarily surprising since $DJT has been in freefall, (down-70% since the SPAC merger) so it’s hard to call this a “profit-taking” moment, but hey, better $100M now than watching it whittle away to nothing, right? 

(Source: Giphy) 

But still, it’s safe to say this sale has people wondering: Is this the start of a domino effect? Sure the stock surged +4.51% today (weirdly enough), but Litinsky isn’t just some random investor—he’s one of the OGs. And when the founding team starts bailing, it’s rarely a good sign in the longrun. 

(Source: CNBC) 

Now, to be fair, things have been complicated between Litinsky and Trump Media for a while. Earlier this year, Litinsky and fellow “Apprentice” alum Wes Moss sued Trump Media, accusing the company of blocking them from selling shares sooner. What followed was classic Trump drama: countersuits, allegations, and some good ol’ corporate mudslinging. Trump’s team fired back, claiming Litinsky and Moss should forfeit their shares entirely because of alleged shady dealings during the company’s formation. But somehow, Litinsky held onto his stake… until now.

(Source: Giphy) 

So, what does this mean for Trump Media? Well, it’s not looking great. The company’s been a meme stock since day one, with investors buying in more for the Trump brand than any solid business fundamentals. And as much as Trump Media tried to position Truth Social as the next big thing, let’s be real—it’s basically a safe space for Trump’s most loyal followers. It hasn’t exactly blown up the way its creators probably hoped.

Why? Well just take the financials as an example. Simply put, they aren’t exactly pretty as revenue hasn’t been anywhere near covering Trump Media’s expenses. This has pretty much body bagged the company’s market cap, which once soared past $10 billion, but is now limping below $2.8 billion. Bruuuutal. 

(Source: CNN) 

For Trump himself, this is a massive paper loss. His 57% stake in the company was once worth over $6 billion. Today? Try $1.6 billion. Bruuuutal #2. 

So what’s next going forward? Well, with Litinsky’s exit, all eyes are on the other major shareholders. Will this trigger a mass exodus, or was Litinsky just cutting his losses before things get even uglier? The truth is, Trump Media’s future is as tied to Trump’s political fortunes as it is to any business maneuvering. The 2024 election is looming, and Trump’s legal troubles are stacking up faster than my wifes weekend plans. Meaning, the company’s stock could live or die based on what happens in the courtroom and at the ballot box.

(Source: Giphy) 

But still, at the end of the day, Trump Media isn’t your typical stock. It’s a sentiment play, pure and simple. Analysts have been saying it from the beginning: this is a meme stock. Investors aren’t buying shares because they’re dazzled by Truth Social’s user growth (spoiler: there isn’t much). They’re betting on Trump’s name and brand… which lets be honest, has done wonders for the guy so far. 

In the end though, there are way more questions than answers. But one thing’s for sure: Litinsky’s sale is a major moment for Trump Media—and it sure as hell isn’t a confidence booster. 

Meanwhile, have one hell of a weekend friends and as always, stay safe and stay frosty! Until next time… 

Stocks.News doesn’t hold any positions in companies mentioned in the article.