Donald Trump's Truth Social began trading under the ticker DJT on Tuesday.
Shares of Trump Media & Technology Group soared in early morning trading on the Nasdaq exchange, rising more than $25, or roughly 50%, to $75.21 per share, before giving up some of the gains in the afternoon. The stock closed at $57.99 per share, or a gain of 16%.
Trump Media & Technology Group ended the day with a market value of $7.8 billion. Trump, who owns 58% of the newly public company, now has a stake valued at $4.6 billion on paper.
The company, whose main asset is the social media service Truth Social and the Trump brand has captured the attention of both critics and supporters. Some investors are buying stock to express their support for the former president while others are looking for a quick buck.
DJT has all the makings of a meme stock, with investors saying things like to keep buying to "drive the liberals insane" or “Get yourself a piece of DJT stock if your a true MAGA supporter." However, the financials are not there. 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.
To make matters worse, they decided to skirt the financial scrutiny of an actual IPO with the merger Digital World Acquisition Corp.(DWAC) which is a so-called blank-check company, also known as a special purchase acquisition company (SPAC). These SPACs are shell companies created to take a private business public without going through an initial public offering process.
With Trump Media & Technology Group's multibillion valuation provides Trump now has access to liquidity at a time when he's increasingly under financial pressure from a string of lawsuits. On Monday, he got a major break when an appeals court reduced a $464 million civil fraud judgment to $175 million, yet he still faces mounting legal bills related to other cases.
That pressure could cause Trump to sell some of DJT stock to help pay for his legal bills, although the company currently has a "lock up" period, effectively barring its executives from selling shares for six months. However, with his son and fellow supports on the board they could change that policy. If Trump sells I believe the price would crater.
Taking all this information into account this stock has all the making scam in my opinion. There’s opportunities to make money don’t get me wrong but this is not an investment this is a pump and dump.
I think the saddest part of this is just how many people are willing to buy into it. I'm all about being empathetic and seeing things through other people's eyes, but understanding how so many people think he is the greatest is one thing I will never be able to reconcile.
I’ve been saying it for a while but the maga movement is a cult. The blind faith they have for man who had repeatedly only done what is good for himself is astonishing.
The financials definitely don't match at all. I think it will crash eventually and honestly, to an extent, I don't know if I would want him to be liable to an extent to a foreign country. If they did decide to buy a lot of DJT stock.
It's pretty wild because you can be a FBI or other 3 letter agency employee with these kind of financial problems due to the possibility of foreign interference but we allow him to run. I would not be surprised if we end up learning he is Saudi or Russian backed at this point.
I think that DJT stock will do well and its value will increase because Trump is a popular person around the world
I think in the end it will go bankrupt for now it will be volatile so there is a good chance you can make money.
Before the DWAC and DWACW merger the stock was around $10...where is it after the merger
Yeah spacs are scammy on their own but to see the price skyrocket is crazy. It's a greater fools theory on this one.
Quite a scam that everyone should pay attention to and be very careful
With that guy yes you should be.
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People should not buy such things at all because their prices will drop very quickly and then people will worry that they have invested their whole life's earnings in it so read everything first. And then only after that should invest.
Every quick money scheme cheats in the same way