In a surprising turn of events, the Trump Media & Technology Group (DJT) saw a 14% increase in its second day of trading on the Nasdaq. The parent company of Truth Social, Donald Trump’s highly anticipated social media platform, climbed 16% on its first official trading day after merging with Digital World Acquisition Corp.
With a market cap now around $8 billion, DJT reported a loss of $49 million and revenue of $3.4 million in the first nine months of last year. Despite these numbers, investors seem bullish on the future of the company.
The resurgence of meme stocks has also been observed, with Reddit and GameStop experiencing run-ups in their stock prices. Additionally, riskier assets like bitcoin and commodities have been soaring in recent weeks.
Short interest in DJT stock is currently around 11% of outstanding shares, significantly higher than the average of 3% to 4% for public companies. This could potentially lead to increased volatility in the stock price.
Former President Donald Trump founded Truth Social after being removed from major social media apps like Facebook and Twitter. He is expected to maintain roughly 60% stake in the company, valued at $4 billion, with a six-month lockup period before selling shares.
However, Trump is facing challenges including a $454 million fraud penalty and a fundraising shortfall as he prepares for a potential 2024 election rematch against President Biden. Stakeholders will have to wait before cashing in their shares, with the only exception being a vote by the company’s board for a special dispensation.
For more news and analysis on financial developments, visit Yahoo Finance.
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