Trump's social media company soars nearly 50% in its first day of trading on Nasdaq
Shares of Donald Trump’s social media company jumped nearly 50% in the first day of trading on the Nasdaq, boosting the value of the former president's large stake in the company in the process
NEW YORK — Shares of Donald Trump’s social media company jumped nearly 50% in the first day of trading on the Nasdaq, boosting the value of Trump's large holdings in the company as well as the smaller stakes of fans who purchased shares as a show of support for the former president.
Trump Media & Technology Group Corp. was acquired Monday by a blank-check company called Digital World Acquisition Corp. Trump Media, which runs the social media platform Truth Social, has now taken Digital World’s place on the Nasdaq stock exchange.
Before trading began, Trump Media had a market value of about $6.8 billion, a figure that will rise significantly if the early gains in the shares hold. The shares are trading under the ticker symbol “DJT.” Trump holds a nearly 60% ownership stake in the company. As of 9:55 a.m. ET, the shares were up 47% to $73.50.
Many of Trump Media’s investors are small-timers either trying to support Trump or aiming to cash in on the mania, instead of big institutional and professional investors. Those shareholders helped the stock of Digital World more than double this year in anticipation of the merger going through.
These investors could experience a bumpy ride. For one, they're betting on a company with vague prospects of turning a profit. Trump Media lost $49 million in the first nine months of last year, when it brought in just $3.4 million in revenue and had to pay $37.7 million in interest expenses. In a recent regulatory filing, the company cited the high rate of failure for new social media platforms, as
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