In a striking display of market dynamics, the stock price of Donald Trump’s social media venture surged over 50% shortly after its public debut on the Nasdaq, trading under the ticker DJT on a vibrant Tuesday morning. This remarkable ascent prompted a temporary trading halt due to its volatility, before resuming at approximately 9:40 a.m. ET. By 9:50 a.m., over 6.5 million shares of Trump Media had exchanged hands, signaling a robust investor interest.
This event marks a significant return for the former president to the Nasdaq, nearly three decades after he first ventured into the public trading arena with his hotel and casino business in 1995, which, despite initial enthusiasm, was delisted from the New York Stock Exchange nine years later.
On the heels of Trump Media’s merger with Digital World Acquisition Corp., the company’s public trading status was cemented, catapulting Donald Trump’s net worth by nearly $4 billion in theoretical gains. Despite generating less than $3.5 million in revenue through the first three quarters of 2023, Trump Media boasted a market valuation of around $2.5 billion in the early trading hours of Tuesday.
The company’s shares witnessed a significant uptick, soaring over 35% on Monday, following a New York appeals court’s decision to reduce the bond Trump would need to post — from $454 million to $175 million — to delay payment on a business fraud judgment while he appeals. The closing price of the company’s shares on Monday hovered just below $50 each.
Trump’s ability to draw attention has positioned the merger between Trump Media and DWAC as one of the most high-profile SPAC mergers to date. Shareholders are likely optimistic about the potential growth of the Truth Social app platform, hoping it will expand its market share sufficiently to become profitable. This anticipation is further amplified by the possibility of Trump’s re-election in November, which could significantly boost the company’s fortunes.
However, Trump Media, much like the earlier venture under the DJT ticker, is currently operating at a loss. The company reported a staggering $49 million in losses for the first nine months of 2023, dwarfing its revenue by more than 14 times.
When Trump Hotels and Casino Resorts went public in 1995, trading at $14 per share under the DJT ticker, it too captured widespread media attention. Despite the company’s financial struggles, Trump personally profited, drawing more than $44 million in salary over a decade. Yet, after accruing $1 billion in losses, Trump Hotels sought bankruptcy protection in November 2004, the same year DJT was removed from the New York Stock Exchange.
Despite these challenges, Trump has maintained a positive outlook, considering the bankruptcy not as a failure but as a success. In a 2004 interview with NBC News, he described the bankruptcy as a strategic move that was more advantageous than other options, emphasizing its technical nature and successful execution.
Stay tuned for further developments on this unfolding story.