Trump Media & Technology Group, founded by former President Donald Trump, is now listed on the Nasdaq under the stock ticker DJT. The company’s main product, Truth Social, was created after Trump was banned from mainstream social media platforms following the January 6, 2021, attack on the US Capitol. However, it remains unclear how the company will generate revenue, as Truth Social has not gained widespread popularity.
This is not the first time Trump has been involved in a publicly traded company with the DJT ticker symbol. His previous venture, Trump Hotels and Casino Resorts, ended up in bankruptcy in 2004, causing significant financial losses for investors. Despite the company’s struggles, Trump himself made millions of dollars through various methods such as salary, bonuses, consulting contracts, and licensing deals.
While Trump’s stock holdings in Trump Hotels and Casino Resorts were wiped out during the bankruptcy, he continued to profit from the company after it emerged from bankruptcy. Trump took home millions of dollars in payments from the re-named Trump Entertainment Resorts, which also faced financial difficulties and filed for bankruptcy a second time in 2009. The pattern of financial instability and bankruptcy in Trump’s previous ventures raises concerns about the future success of Trump Media & Technology Group.
Following the merger between Trump’s media company and Digital World Acquisition Corp, the stock price of DWAC surged, leading to a significant increase in market enthusiasm. However, experts warn that the stock may be overvalued based on the company’s revenue and user base. Truth Social’s user numbers are declining, and Trump’s stake in the company is currently valued at approximately $4 billion, despite the lack of profitability and uncertainty about the company’s future.
In light of Trump’s reduced civil fraud bond obligation, there is speculation that he may seek to sell some of his stock in Trump Media to cover any financial discrepancies. The board of directors may potentially allow Trump to bypass the lock-up period and sell his shares sooner than allowed. With concerns about the company’s financial viability and Trump’s history of bankruptcy in previous ventures, investors are cautioned against blindly investing in the company based on market enthusiasm. The future success of Trump Media & Technology Group remains uncertain, and financial experts urge caution when considering investments in the company.
