Finance

Trump’s Truth Social shares soar in first day of trading


Donald Trump’s social media platform Truth Social (DJT)’s stock price soared more than 40% on its first day of trading on Nasdaq on Tuesday afternoon.

At around 3 p.m., the stock price of Trump Media & Technology Group, the parent company of Truth Social, rose to more than $70, with the stock code “DJT” (Trump’s initials).

company merge with Special Purpose Vehicles Digital World Acquisition Corp. (Devak) shareholders approved a deal last week. Prior to the merger, DWAC had been public since 2021.

Trump founded Truth Social after he was kicked out of major social media apps like Facebook and Twitter (the platform is now known as X) following the Capitol riots on January 6, 2021. He has since returned to these platforms.

Trump will remain rough 60% equity Truth Social owns nearly 79 million shares. Based on current trading levels, that would imply a valuation of over $5 billion.

The merger comes at a difficult time for the former president $454 million in fraud fines and try to solve Inadequate campaign fundraising He is preparing for a rematch with current Commander-in-Chief Joe Biden in the 2024 presidential 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.

According to Digital World’s filing with the SEC, Trump Media lost $49 million in the first nine months of last year but had revenue of $3.4 million.

as Rick Newman, Yahoo Finance pointed out that Short Interest in DWAC Stock — a bet that stock prices will fall rather than rise — accounts for about 11% of outstanding shares.It is important to note that the average short interest in public companies is located at 3% to 4% range.

Former President Donald Trump waits for a preliminary hearing in his Manhattan criminal case with his defense team on Monday, March 25, 2024, in New York. A judge will put the former president on trial on Monday.  (AP Photo/Mary Altaver, Pool)

Former President Donald Trump and his defense team await the start of a preliminary hearing on Monday, March 25, 2024, in New York. (Associated Press)

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

Click here for the latest stock market news and in-depth analysis, including events affecting stock trends

Read the latest financial and business news from Yahoo Finance





Source link

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button