Trump Media & Technology Group, the company behind the much-anticipated Truth Social platform linked to former President Donald Trump, has made its debut on the stock market. According to reports from ABC News, trading in Trump Media & Technology Group, trading under the ticker symbol DJT, began on the Nasdaq with a significant surge in value.
Shares of Trump Media & Technology Group experienced a remarkable increase, with an initial surge of approximately 56% at the opening bell, as per CNN. The stock, traded under the symbol "DJT," briefly halted due to volatility but later stabilized around $70, marking a substantial rise from the previous day's closing price.
Former President Trump's involvement and ownership stake in the company have garnered significant attention. As reported by ABC News, Trump owns 58% of the shares, placing his stake at over $5 billion based on early trading figures. However, due to lockup provisions, Trump is unable to sell or leverage his shares for at least six months.
Trump Media CEO Devin Nunes expressed confidence in the platform's long-term success, saying, "As a public company, we will passionately pursue our vision to build a movement to reclaim the Internet from Big Tech censors," as reported by ABC News.
Despite the surge in stock value, concerns have been raised about the valuation of Trump Media & Technology Group. According to CNN, financial experts caution that the assigned valuation of approximately $13 billion may not accurately reflect the company's performance. Truth Social, the flagship product of Trump Media, faces challenges such as declining user numbers and financial losses.
Analysts draw parallels between the soaring stock price of Trump Media and the phenomenon of meme stocks like GameStop. Jay Ritter, a finance professor at the University of Florida's Warrington College of Business, expressed skepticism about the sustainability of the stock's current valuation, suggesting that it may eventually drop to reflect the company's true value, the CNN report added.
