Trump Media & Technology (DJT -1.72%) stock fell again this week. The company’s share price closed out the stretch down 12.3% from the previous Friday’s closing price, according to data from S&P Global Market Intelligence. The S&P 500 index closed out the week down 4.3%, and the Nasdaq Composite index ended the period down 5.8%.

Trump Media stock lost ground as rising fears that the U.S. economy could slip into a recession prompted sell-offs for the broader market. In addition to macroeconomic factors, the company’s share price likely moved lower due to competition from other social media platforms and the lock-up expiration on insider stock sales set to take place later this month.

Investors worry economic conditions could turn bearish

Bearish sentiment surrounding the U.S. economy increased this week. Tracking released on Tuesday showed that the country’s manufacturing sector had declined again in August, and Friday’s jobs report from the Labor Department arrived with weaker-than-expected results. The average Wall Street target had called for 160,000 jobs to be added last month, but only 142,000 jobs were added in the period. Job growth numbers for June and July were also revised downwards.

The Labor Department’s data further raised concerns that the economy could be headed for recession in the not-too-distant future. Investors had hoped the Federal Reserve’s anticipated rate cut this month would create bullish macro conditions for stocks, but these concerns could dash those hopes.

Trump Media stock hits a new record low

Former President Donald Trump is Trump Media’s majority shareholder, and Truth Social is currently the centerpiece of the company. The social media platform shares similarities with X, formerly known as Twitter. Trump was previously banned from Twitter, but his status was reversed after Tesla CEO Elon Musk purchased the platform.

Despite X being a competitor to Truth Social, Trump has returned to posting on the rival platform to aid his presidential campaign. While the former president is still posting far more messages on Truth Social than on X, being active on both platforms takes away some of Truth Social’s value proposition.

In addition to those concerns, investors also appear worried that a large amount of stock will soon be sold on the open market. The lock-up period preventing insider selling is set to expire on Sept. 25, although it could happen five days earlier due to previously announced stipulations. The company’s valuation could plummet if Trump or other large insider owners wind up selling a large amount of shares, and this risk pushed Trump Media stock to a new record low this week.