- 27 March 2024
- Posted by: Federica Montella
- Categories: eToro CopyTrader, Investing
Shares in Donald Trump’s social media venture surged during its New York stock market debut on Tuesday, propelling the former US president’s stake to a staggering $4.6 billion.
The company behind Trump’s Truth Social platform, known as Trump Media & Technology Group (TMTG), experienced a remarkable rise. Its share price soared from the previous day’s value of $49.95 to a peak of $79.38 before settling at $57.99 — a 16% increase.
The trading frenzy was so intense that trading had to be temporarily halted.
TMTG has now secured a listing on the Nasdaq stock exchange, using the ticker symbol DJT (reflecting Trump’s initials).
This milestone follows the completion of its merger with blank-check company Digital World Acquisition Corp on Monday.
As the largest shareholder, Trump owns 58% of the merged company’s shares (before accounting for dilution), making him the primary beneficiary of this price surge.
Truth Social, founded by Trump Media & Technology Group (TMTG) in October 2021, emerged as an alternative to mainstream social media platforms, positioning itself as a space where users can express their views without perceived censorship. Its official launch occurred on February 21, 2022.
Trump’s interest in creating a new social media platform stemmed from his ban from Facebook and Twitter following the 2021 United States Capitol attack.
Prior to Truth Social, he briefly experimented with a web page called “From the Desk of Donald J. Trump,” which posted short announcements but was eventually shut down.
In summary, Truth Social represents Trump’s attempt to carve out a digital space that aligns with his vision, but it faces substantial financial and regulatory headwinds. Its success or challenges will continue to unfold in the dynamic landscape of social media.
