For approximately $70, you can now own a share of the company behind former President Donald Trump’s Truth Social platform.
Trading in Trump Media & Technology Group — which uses the ticker symbol DJT — began on the Nasdaq Tuesday morning after last week’s vote for a merger between Trump Media and special purpose acquisition company Digital World Acquisition Corporation.
The company’s market capitalization is approximately $2.7 billion.
Trump himself owns 58 percent of the shares in the company, placing his stake at more than $5 billion based on early trading Tuesday.
“Truth Social is doing very well. It’s hot as a pistol and doing great,” Trump told reporters in New York on Monday.
Trump can’t sell or leverage his stake in the company for at least six months due to a lockup provision intended to prevent a rapid selloff that could shake investor confidence, but the company has already bolstered Trump’s net worth. On the heels of Friday’s merger vote, Trump joined the Bloomberg Billionaires Index for the first time with a reported net worth of $6.5 billion.
In public statements, Trump Media CEO Devin Nunes has expressed confidence in the long-term success of the social media platform.
Former President Donald Trump arrives to speak during a “Get Out The Vote” rally at the Forum River Center, March 9, 2024, in Rome, Ga.
Christian Monterrosa/Bloomberg via Getty Images
“As a public company, we will passionately pursue our vision to build a movement to reclaim the Internet from Big Tech censors,” Nunes said Monday. “We will continue to fulfill our commitment to Americans to serve as a safe harbor for free expression and to stand up to the ever-growing army of speech suppressors.”
Trump Media has a long road before it reaches profitability, according to a recent SEC filing, and most new social media companies face a low likelihood of success. In the first nine months of 2023, Trump Media brought in less than $3.4 million in revenue while losing $49 million.
Shares in the special purpose acquisition company Digital World Acquisition Corp have performed well in recent months ahead of the merger, partially due a support from smaller investors rallying the price.
Trump himself is intertwined with the fate of the company as not only its majority shareholder but also the platform’s most prominent user. If he were to stop using the platform, its share would likely suffer, a recent SEC filing acknowledged.
“If Truth Social fails to develop and maintain followers or a sufficient audience, if adverse trends develop in the social media platforms generally, or if President Trump were to cease to be able to devote substantial time to Truth Social, TMTG’s business would be adversely affected,” a recent filing said.
Trump Media & Technology Group, the parent company of Truth Social, has made headlines once again as it commenced trading on the Nasdaq stock exchange. This move marks a significant milestone for the controversial social media platform, which was founded by former President Donald Trump as a response to what he perceived as censorship on mainstream social media platforms.
Truth Social, which bills itself as a platform for free speech and conservative voices, has garnered both praise and criticism since its launch earlier this year. The platform aims to provide a space for users to express their opinions without fear of being censored or de-platformed, a common complaint among conservative users on platforms like Twitter and Facebook.
The decision to take Trump Media & Technology Group public on the Nasdaq is seen as a strategic move to raise capital and expand the reach of Truth Social. The company raised over $1 billion in its initial public offering, making it one of the largest IPOs in recent memory.
The move also signals Trump’s continued influence in the tech and media landscape, despite being banned from major social media platforms like Twitter and Facebook. Trump has been a vocal critic of these platforms, accusing them of bias against conservative voices and calling for alternative platforms to be created.
While Truth Social has attracted a loyal following of conservative users, it has also faced criticism for its handling of misinformation and hate speech on the platform. Critics argue that Truth Social has become a breeding ground for conspiracy theories and extremist views, leading to concerns about the spread of harmful content on the platform.
Despite these challenges, Trump Media & Technology Group remains optimistic about the future of Truth Social and its potential for growth. The company has announced plans to expand into other areas of media and technology, including streaming services and e-commerce.
As Trump Media & Technology Group begins trading on the Nasdaq, all eyes will be on the company to see how it navigates the challenges of running a social media platform in today’s polarized political climate. With its strong financial backing and dedicated user base, Truth Social may have the potential to become a major player in the social media landscape in the years to come.
