The parent company of Donald Trump’s Truth Social platform, Trump Media & Technology Group, made its debut on Wall Street on Tuesday, with shares priced at $78 under the ticker symbol “DJT”. Despite the initial excitement surrounding the IPO, share value fluctuated throughout the day before ultimately closing at $57.99.
With this new listing, Mr. Trump’s majority stake in the company is now valued at $5.5 billion, catapulting him into the ranks of the world’s 500 richest individuals. Shareholders voted to take the company public, a move that could potentially help Trump fund court-ordered judgements against him. Currently, Trump is facing a $454 million penalty for fraud, for which he is required to post a $175 million bond to block enforcement.
To help cover legal expenses and fees, political action committees supporting Trump have been channeling funds to the company. The merger between Trump Media and Digital World Acquisition Corporation was successfully approved by shareholders, with a provision preventing major shareholders from selling their shares for six months.
Despite being valued at $14 billion on Wall Street, concerns have been raised about the company’s financial performance. Truth Social has been losing users and money, with Trump Media reporting a revenue of $3.4 million and a loss of $49 million in the first nine months of last year. Experts predict that the stock price may eventually drop back to $2 a share, as the underlying business is not expected to be highly profitable in the long run.
