Please ensure Javascript is enabled for purposes of website accessibility
Trump's Social Media Company Soars Nearly 50% in Its First Day of Trading on Nasdaq
gvw_ap_news
By Associated Press
Published 1 year ago on
March 26, 2024

Trump Media, which runs the social media platform Truth Social, now takes Digital World’s place on the Nasdaq stock exchange. (AP/Peter Morgan)

Share

Getting your Trinity Audio player ready...

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.

Nunes Has 115,000 Shares of Company

(Former Valley Congressman Devin Nunes, the CEO of Trump Media, is listed as owning 115,000 shares in the company.

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 well as the company’s expectation that it will lose money on its operations “for the foreseeable future” as risks for investors.

Truth Social launched in February 2022, one year after Trump was banned from major social platforms including Facebook and X, formerly Twitter, following the Jan. 6 insurrection at the U.S. Capitol. He’s since been reinstated to both but has stuck with Truth Social.

Trump: ‘Truth Social Hot as a Pistol’

On Monday, Trump appeared in court in New York at hearing for a criminal case involving hush money payments made to cover up claims of marital infidelity. Afterward, Trump told reporters that “Truth Social is doing very well. It’s hot as a pistol and doing great.”

However, Trump Media has yet to disclose Truth Social’s user numbers — although that should change now that the company is public. Research firm Similarweb estimates that Truth Social had roughly 5 million active mobile and web users in February. That’s far below TikTok’s more than 2 billion and Facebook’s 3 billion — but still higher than other “alt-tech” rivals like Parler, which has been offline for nearly a year but is planning a comeback, or Gettr, which had less than 2 million visitors in February.

Besides competition in the social media field, Trump Media faces other risks — including to some degree Trump.

Trump Media, which is based in Palm Beach, Florida, said in a regulatory filing that it “is highly dependent on the popularity and presence of President Trump.” If the former president were to limit or discontinue his relationship with the company for any reason, including due to his campaign to regain the presidency, the company “would be significantly disadvantaged.”

Acknowledging Trump’s involvement in numerous legal proceedings, the company noted that “an adverse outcome in one or more” of the cases could negatively affect Trump Media and Truth Social.

Another risk, the company said, was that as a controlling stockholder, Trump would be entitled to vote his shares in his own interest, which may not always be in the interests of all the shareholders generally.

If recent trading activity is any indication, investors should expect the shares to be volatile. Digital World shares more than doubled this year ahead of a shareholder vote on the merger with Trump Media. After the vote Friday, shares dropped almost 14. Monday, they rebounded strongly with a gain of 35%.

RELATED TOPICS:

DON'T MISS

What Are Fresno Real Estate Experts Predicting for 2025 and Beyond?

DON'T MISS

First California EV Mandates Hit Automakers This Year. Most Are Not Even Close

DON'T MISS

Will California Meet Newsom’s 2035 EV Deadline? It Won’t Even Hit the 2026 Target 

DON'T MISS

Trump Says Putin May Not Want Peace and May Need to Be ‘Dealt With Differently’

DON'T MISS

Is It Bad to Chew Gum All Day?

DON'T MISS

Dollar Doubts Dominate Gathering of Global Economic Leaders

DON'T MISS

US Judge Temporarily Stops West Texas Immigrant Deportations Under Alien Enemies Act

DON'T MISS

Shedeur Sanders’ Long Wait Ends When Browns Take Him in the 5th Round of the NFL Draft

DON'T MISS

Only About Half of Republicans Say Trump Has Focused on the Right Priorities

DON'T MISS

ICE Deports the Mother of an Infant and a 2-Year-Old Who Is a US Citizen

DON'T MISS

Israeli Airstrike Kills 10 People, Half of Them Children

DON'T MISS

Shedeur Sanders Is Still Waiting for a Call as the NFL Draft Enters the Final Day

UP NEXT

Trump Says Putin May Not Want Peace and May Need to Be ‘Dealt With Differently’

UP NEXT

Is It Bad to Chew Gum All Day?

UP NEXT

Dollar Doubts Dominate Gathering of Global Economic Leaders

UP NEXT

US Judge Temporarily Stops West Texas Immigrant Deportations Under Alien Enemies Act

UP NEXT

Shedeur Sanders’ Long Wait Ends When Browns Take Him in the 5th Round of the NFL Draft

UP NEXT

Only About Half of Republicans Say Trump Has Focused on the Right Priorities

UP NEXT

ICE Deports the Mother of an Infant and a 2-Year-Old Who Is a US Citizen

UP NEXT

Israeli Airstrike Kills 10 People, Half of Them Children

UP NEXT

Shedeur Sanders Is Still Waiting for a Call as the NFL Draft Enters the Final Day

UP NEXT

Israel’s AI Experiments in the War in Gaza Raise Ethical Concerns

Dollar Doubts Dominate Gathering of Global Economic Leaders

1 day ago

US Judge Temporarily Stops West Texas Immigrant Deportations Under Alien Enemies Act

1 day ago

Shedeur Sanders’ Long Wait Ends When Browns Take Him in the 5th Round of the NFL Draft

1 day ago

Only About Half of Republicans Say Trump Has Focused on the Right Priorities

1 day ago

ICE Deports the Mother of an Infant and a 2-Year-Old Who Is a US Citizen

1 day ago

Israeli Airstrike Kills 10 People, Half of Them Children

1 day ago

Shedeur Sanders Is Still Waiting for a Call as the NFL Draft Enters the Final Day

1 day ago

Israel’s AI Experiments in the War in Gaza Raise Ethical Concerns

1 day ago

Paul Skenes Strikes Out 9, Wins Duel With Yamamoto in Pirates’ Victory Over Dodgers

1 day ago

Eovaldi Outlasts Verlander as Rangers Beat Giants

1 day ago

Will California Meet Newsom’s 2035 EV Deadline? It Won’t Even Hit the 2026 Target 

It was with brash confidence that Gov. Gavin Newsom announced that by 2035, the only new cars and light trucks sold in California would be e...

11 hours ago

11 hours ago

Will California Meet Newsom’s 2035 EV Deadline? It Won’t Even Hit the 2026 Target 

1 day ago

Trump Says Putin May Not Want Peace and May Need to Be ‘Dealt With Differently’

1 day ago

Is It Bad to Chew Gum All Day?

1 day ago

Dollar Doubts Dominate Gathering of Global Economic Leaders

1 day ago

US Judge Temporarily Stops West Texas Immigrant Deportations Under Alien Enemies Act

1 day ago

Shedeur Sanders’ Long Wait Ends When Browns Take Him in the 5th Round of the NFL Draft

1 day ago

Only About Half of Republicans Say Trump Has Focused on the Right Priorities

1 day ago

ICE Deports the Mother of an Infant and a 2-Year-Old Who Is a US Citizen

Help continue the work that gets you the news that matters most.

Search

Send this to a friend