Former President Donald Trump’s Truth Social made a splash on Tuesday as it began trading under the ticker “DJT,” marking Trump’s return to the public company arena. The real estate mogul’s company, Trump Media & Technology Group, saw its shares soar in early trading on the Nasdaq exchange, rising by 50% before settling at a 16% gain by the end of the day.
With a market value of $7.8 billion, Trump now holds a stake valued at $4.6 billion in the newly public company. The main asset of Trump Media & Technology Group is the social media platform Truth Social, which has garnered attention from both critics and supporters. Some investors are buying stock to show their support for the former president, while others are looking to capitalize on the hype surrounding the company.
The company’s debut on the stock market has sparked excitement among users on Truth Social, with some posting about being shareholders and urging fellow conservatives to drive the stock price higher. Trump himself expressed his enthusiasm for Truth Social, declaring his love for the platform on Tuesday.
Despite the optimism surrounding the company, investors should be cautious as Trump Media & Technology Group faces uncertain financial prospects. The company reported a loss of $49 million in the first nine months of last year, with minimal revenue and significant interest expenses.
The choice of the ticker symbol “DJT” for the company has been noted as being “on brand” for Trump, reflecting his initials. The merger with Digital World Acquisition Corp., a blank-check company, allowed the company to go public without an initial public offering, leading to a surge in the share price of the SPAC ahead of the merger.
As Trump faces mounting legal bills, the multibillion-dollar valuation of Trump Media & Technology Group could provide him with much-needed liquidity. However, there are restrictions on selling shares due to a lock-up period, although the company’s board could potentially waive this restriction.
Investors should also consider the track record of Trump’s previous publicly traded company, Trump Hotels & Casino Resorts, which eventually filed for bankruptcy after an initial surge in share price. Despite the risks, the excitement surrounding Truth Social and Trump’s return to the public company arena has captured the attention of investors and supporters alike.
