The share price of Donald Trump’s social media company, Trump Media & Technology Group, saw a significant increase of more than 39% shortly after it began trading on the NASDAQ stock market under the ticker DJT on Tuesday morning. The trading of the company was briefly halted due to volatility before resuming around 9:40 a.m. ET. This debut on the stock market occurred almost three decades after Trump used the same ticker to launch his publicly traded hotel and casino company in 1995, which was later delisted from the New York Stock Exchange.
The merger of Trump Media with Digital World Acquisition Corp. was completed on Monday, resulting in the company becoming publicly traded and adding nearly $4 billion in paper profits to Trump’s net worth. Despite reporting revenue of less than $3.5 million over the first three quarters of 2023, Trump Media’s market valuation could potentially reach $6 billion at the opening bell on Tuesday. The company’s share price under the DWAC ticker surged more than 35% on its last day of trading, following a reduction in the bond amount Trump needed to post for a business fraud case.
Trump’s notoriety has played a significant role in making the merger between Trump Media and DWAC one of the highest-profile SPAC mergers. Shareholders are hopeful that the Truth Social app platform, part of Trump Media, will experience substantial growth and potentially turn the company into a profitable venture. Trump’s potential election as president in November could further boost the company’s growth. However, at the moment, Trump Media remains a money-losing entity, reporting $49 million in losses for the first nine months of 2023, which is significantly higher than its revenue.
Comparisons can be drawn between Trump Media’s debut under the DJT ticker and Trump’s previous venture, Trump Hotels and Casino Resorts, which also went public under the same ticker in 1995. Trump personally benefited from the hotel and casino company for years, receiving millions in salary despite the firm failing to turn a profit. The company eventually filed for bankruptcy in 2004, leading to the delisting of DJT from the NYSE. Despite the financial challenges faced by Trump’s previous ventures, he viewed them as successes in their own right, as they provided viable alternatives in challenging circumstances.
The history of Trump’s businesses, especially in the realm of public trading, highlights the volatility and risks associated with investing in companies linked to high-profile figures. Trump’s ongoing involvement in the public sphere, including the potential impact of his political ambitions on Trump Media’s future, adds a layer of complexity to the company’s trajectory. As the market reacts to Trump Media’s debut and any subsequent developments, investors and analysts will closely monitor the company’s performance and financial indicators to assess its long-term viability and success.
