The share price of Donald Trump’s social media company, Trump Media & Technology Group, soared by more than 50% shortly after it commenced public trading under the ticker DJT on Tuesday morning, igniting trading volatility that led to a brief halt.
Trading resumed on the Nasdaq stock market after the halt, with over 6.5 million shares in Trump Media exchanging hands within minutes. The DJT ticker symbol marks a significant moment, nearly three decades after Trump’s prior venture utilized the same symbol for its public debut, albeit met with a different fate.
Trump Media attributed the ticker choice to pay homage to Donald J. Trump, the company’s former Chairman and Director, and the 45th President of the United States. In a statement, Trump Media emphasized the demand for free-speech platforms, positioning itself as an alternative to Big Tech’s perceived censorship.
The completion of Trump Media’s merger with Digital World Acquisition Corp. on Monday facilitated its transition to becoming publicly traded. With Trump as the majority shareholder, valued at $5.6 billion based on share price, the company’s directors include his son Donald Trump Jr. and other close allies.
Despite the surge in market valuation, Trump Media reported modest revenue figures of less than $3.5 million in the first three quarters of 2023, with significant reported losses. The lack of financial transparency on its website raises questions about its financial standing.
The company’s stock witnessed a surge of over 35% on its last trading day under the DWAC ticker, following a legal development that reduced the bond amount Trump would have to post for a business fraud judgment appeal.
While Trump’s shares are subject to a six-month lock-up period, the company’s board could potentially grant a waiver. The volatile market debut reflects the anticipation surrounding Trump Media’s entry into the public sphere, highlighting investor interest amidst ongoing legal and financial developments.
