Finance

Trump Media shares soar on day two of listing


Trump Media & Technology Group (DJT) soared 14% on its second day of trading on Nasdaq on Wednesday (^IXIC).

Shares of Truth Social, the parent company of Donald Trump’s social media platform Truth Social, rose 16% on its first official day of trading on Tuesday. merge Last week, shareholders approved a deal with special purpose acquisition vehicle Digital World Acquisition Corp.

DJT makes a strong appearance The Resilience of Meme Stocks Because some trades that were thought to lack fundamentals saw eye-popping returns.

According to documents filed by DWAC with the SEC, Trump Media lost $49 million in the first nine months of last year but had revenue of $3.4 million. At current levels, its market capitalization is approximately $8 billion.

Other meme-friendly names like Reddit (RDDT) and game stop (Society of General Mechanical Engineers) has also seen significant gains in recent days, while riskier assets such as Bitcoin (BTC-USD) and commodities have surged in price since the start of the year.

Some names are coming back down to earth. Reddit and GameStop fell about 13% and 16%, respectively, in Wednesday trading.

Short Interest in DJT Stock Betting that the stock price will fall rather than rise is about 11% of shares outstanding, according to the latest data from S3 Partners.The average short interest in public companies is located at 3% to 4% range.

Trump Media shares surged on day two of trading.  (AP/Paul Sancya, Archivo)

Shares of Trump Media surged on their second day of trading. (Associated Press)

The former president founded Truth Social after he was kicked out of major social media apps like Facebook and Twitter following the Jan. 6, 2021, Capitol riots, with the platform now known as X. Trump has since resumed his presence on these platforms.

Trump will remain rough 60% equity Truth Social’s stake is currently worth about $4 billion.The merger comes as the former president still faces $454 million in fraud fines and try to solve Inadequate campaign fundraising He is preparing for a rematch with President Joe Biden in the 2024 election.

But Trump will have to wait to cash in on his stock.

Under the terms of the merger, interested parties must comply with a six-month lock-up period before selling or transferring shares, with the only exception being a special exemption voted by the company’s board of directors.

alexandra canal is a senior reporter at Yahoo Finance.Follow her on X @allie_canal, LinkedIn, and email her at alexandra.canal@yahoofinance.com.

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