The company behind Donald Trump's social media platform Truth Social made an explosive debut on Wall Street, with shares skyrocketing and briefly pushing the firm's valuation to nearly $6 billion.
Trump Media & Technology Group began trading on the Nasdaq under the ticker symbol "DJT" - the former president's initials - following its merger with Digital World Acquisition Corp. The stock surged as much as 59% during Tuesday's session before settling with a gain of approximately 16%.
Paper Fortune for Former President
This dramatic market performance represents a significant financial windfall for Mr Trump, who owns approximately 60% of the company. At its peak valuation, his stake was worth nearly $4 billion on paper, though lock-up restrictions prevent him from immediately selling shares.
The impressive market debut comes despite Truth Social generating just $3.3 million in revenue during the first nine months of 2023 while recording losses of $49 million. The platform was launched in 2022 after Mr Trump was banned from major social media sites following the January 6 Capitol riots.
Volatile Trading and Investor Enthusiasm
Market analysts noted the stock's volatility, with shares experiencing significant swings throughout the trading day. The company's market capitalisation briefly approached $6 billion before retreating as some investors took profits.
The successful listing provides Mr Trump with a valuable financial asset as he faces mounting legal bills and judgments from various court cases. However, experts caution that the company's current valuation appears disconnected from its financial fundamentals, reflecting instead the enthusiasm of Mr Trump's political supporters.
Trump Media now joins a small group of companies trading under personalised ticker symbols, marking a remarkable comeback for the former president's business interests amid his ongoing political campaign.
