Donald Trump’s social media company saw a rapid surge in its share price, climbing by over 50% shortly after it commenced trading on Tuesday morning under the ticker DJT. Trading for Trump Media & Technology Group was briefly halted due to volatility before resuming around 9:40 a.m. ET, with over 6.5 million shares changing hands by 9:50 a.m.
The ticker DJT made its debut on the NASDAQ stock market almost thirty years after Trump used it to launch his publicly traded hotel and casino company in 1995, which was later delisted from the New York Stock Exchange nine years later.
Following its merger with Digital World Acquisition Corp., completed on Monday, Trump Media added nearly $4 billion in paper profits to Donald Trump’s net worth. Despite reporting revenue of less than $3.5 million over the first three quarters of 2023, Trump Media was poised for a market valuation of around $6 billion at the opening bell on Tuesday.
The company’s shares under the DWAC ticker soared over 35% on its last trading day, Monday, following a reduction in the bond amount Trump would have to post for a business fraud judgment appeal. The closing price on Monday stood just under $50 per share.
Trump’s prominence played a significant role in making the Trump Media-DWAC merger one of the most high-profile SPAC mergers to date. Shareholders are hopeful that the Truth Social app platform will drive substantial market growth and eventually turn a profit, particularly if Trump were to be elected president in November.
However, at present, Trump Media, much like its predecessor under the DJT ticker, is facing financial losses. Reporting $49 million in losses for the first nine months of 2023, the company’s losses were over 14 times its revenue.
Trump’s previous venture, Trump Hotels, and Casino Resorts, went public at $14 per share in 1995 under the DJT ticker, generating significant headlines and personal profits for Trump over the years. Despite repeated failures to turn a profit, Trump personally received over $44 million in salary from the company over a decade. The company filed for bankruptcy protection in November 2004, coinciding with DJT’s delisting from the New York Stock Exchange, with Trump describing it as a “success” due to working better than other alternatives.
