Trump Media & Technology Group Corp. has started trading on the Nasdaq stock exchange after being acquired by Digital World Acquisition Corp. This move places the company behind the social media platform Truth Social into the public market spotlight with an initial stock price near $50 and a valuation of approximately $6.8 billion.
The company’s investor base largely consists of small-time investors drawn by support for Trump or the potential for profit from the associated hype, rather than institutional investors. Despite the enthusiasm, Trump Media reported a $49 million loss in the first nine months of the previous year against $3.4 million in revenue, facing significant interest expenses and acknowledging ongoing operational losses as a major investor risk.
Since its launch in February 2022, after Trump’s ban from major platforms, Truth Social has not disclosed its user numbers, which is expected to change with the company’s public status. Estimates suggest the platform had around 5 million active users in February, a figure that pales in comparison to giants like TikTok and Facebook but competes well within the “alt-tech” space.
Trump Media’s success is closely tied to Donald Trump, who retains nearly a 60% ownership stake. The company’s fortunes are thus linked to Trump’s personal brand and political activities, including his legal challenges and potential presidential campaign activities, which could impact the company’s market performance and investor interests.
Investors have already witnessed volatility in the stock’s performance, with significant fluctuations surrounding the merger completion and ongoing adjustments as the market responds to the company’s public trading debut.
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