Trump’s Truth Social Stock Surges on First Day of Trading

Trump’s Truth Social Stock Surges on First Day of Trading

Donald Trump’s social media platform, Truth Social (DJT) jumped more than 30% on its first day of trading on Nasdaq (^IXIC).

Shares of Trump Media & Technology Group, Truth Social’s parent company, were trading at more than $65 under the ticker symbol “DJT,” Trump’s initials, just after the market opened Tuesday.

The company merged with an ad hoc vehicle Digital World Acquisition Corp. (DWAC) as part of an agreement approved by shareholders last week. Prior to the merger, DWAC had been listed on the public market since 2021.

Truth Social was founded by Trump after he was kicked off major social media apps like Facebook and Twitter, the platform now known as X, following the Capitol riots on January 6, 2021. He has since been reinstated on the platforms.

Trump will retain a roughly 60% stake in Truth Social, or nearly 79 million shares. That valuation could increase to more than 3 billion dollars depending on trade levels.

The merger comes as the former president faces a $454 million fraud fine and struggles with a campaign fundraising deficit as he prepares for a 2024 presidential rematch against current Commander-in-Chief Joe Biden.

But Trump will have to wait before cashing in on his actions.

Under the terms of the merger, stakeholders are subject to a six-month hold period before selling or transferring shares. The only exception would be if the company’s board of directors votes in favor of a special exemption.

According to an SEC filing by Digital World, Trump Media lost $49 million in the first nine months of last year and generated $3.4 million in revenue.

As Rick Newman of Yahoo Finance underlines, short interest in DWAC stock – bets that the stock price will fall rather than rise – accounted for about 11% of shares outstanding. It is worth noting that the average short interest for public companies falls within the range Range 3% to 4%.

Alexandra Canal is a senior reporter at Yahoo Finance. Follow her on @allie_canal, LinkedIn, and email her at alexandra.canal@yahoofinance.com.

Trump’s Truth Social Stock Surges on First Day of Trading

Former President Donald Trump waits for the start of a preliminary hearing with his Manhattan criminal defense team, Monday, March 25, 2024, in New York. A judge will set the date for the former president’s trial on Monday. (AP Photo/Mary Altaffer, swimming pool) (ASSOCIATED PRESS)

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