Donald Trump’s Truth Social’s trading debut under the ticker “DJT” marked the real estate mogul’s return to the realm of public companies, now fronted by his initials.
The public offering saw a significant surge in the value of Trump Media & Technology Group’s shares, which, at one point in early trading on the Nasdaq, soared by more than 50%, peaking at $75.21, before experiencing a partial retraction in value later in the day. The stock ultimately closed at $57.99, reflecting a 16% increase.
By the end of the day, Trump Media & Technology Group boasted a market capitalization of $7.8 billion. Trump, who retains a 58% ownership, holds a stake now valued at $4.6 billion, albeit on paper.
Centered around the social media platform Truth Social, the company has drawn significant interest and investment from both critics and supporters of the former president. The stock has been particularly popular among individual investors demonstrating their support for Trump or those looking to profit from the stock’s volatility, as opposed to large institutional investors.
Enthusiasm for the stock was palpable on Truth Social, where users shared their shareholder status or sought investment advice. Some urged a rally behind “DJT” to push its price beyond $100 per share for political vindication. Trump has been vocally supportive of Truth Social, promoting it as a success and a platform he loves.
The move to go public was facilitated through a merger with Digital World Acquisition Corp., a SPAC, allowing Truth Social to bypass the traditional initial public offering process. This method reflects Trump’s strategic use of branding, even extending to the choice of the ticker symbol, “DJT,” which resonates with his personal and business branding.
Despite the initial success, investors might face volatility given the company’s challenging financial situation, having reported a $49 million loss in the prior year with only $3.4 million in revenue against significant interest expenses.
The SPAC merger and subsequent public listing offer Trump a crucial liquidity opportunity, especially as he faces financial pressures from ongoing legal challenges. Although a “lock up” period currently restricts share sales by executives, there’s speculation about potential moves Trump could make to access this liquidity, despite the risks such actions might pose to the stock’s stability.
