Home Australia Stock in Trump’s Truth Social halted for ‘volatility’ – after jumping 50% on stock market debut then dropping

Stock in Trump’s Truth Social halted for ‘volatility’ – after jumping 50% on stock market debut then dropping

by Elijah
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Trump Media & Technology Group, whose flagship product is the social networking site Truth Social, will begin trading on the Nasdaq Stock Market on Tuesday, March 26, 2024.
  • The company would be valued at up to $8.71 billion based on pre-market trading price.
  • But he cannot sell the shares for six months due to lockdown restrictions.

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Shares of Donald Trump’s new social media company rose as much as 50 percent when they debuted on the stock market on Tuesday.

Truth Social’s parent company joined the Nasdaq under the symbol DJT. Before that, shares were valued at $49.50 on Monday.

Shares initially rose to about $78 before falling back to about $65, all within minutes. This led to trading being suspended for ten minutes due to volatility, a common move when the price moves so quickly.

Since then, shares of the company that owns Truth Social, which has been in existence for less than two years, have fluctuated between $67 and $78.

At $67, the company’s market capitalization is $9.08 billion, as much as Reddit, which listed last week after 19 years.

Trump’s majority stake in Trump Media & Technology Group is worth $5.3 billion at that price. That number will rise or fall with the price of the stock.

With the jump in share price this morning, its stake has increased by around $1 billion, at least on paper.

But he can’t sell the shares – or even use them as collateral for a loan – under lockdown restrictions for six months.

Trump Media & Technology Group, whose flagship product is the social networking site Truth Social, will begin trading on the Nasdaq Stock Market on Tuesday, March 26, 2024.

Trump Media & Technology Group, whose flagship product is the social networking site Truth Social, will begin trading on the Nasdaq Stock Market on Tuesday, March 26, 2024.

Trump Media & Technology Group common stock will trade under the ticker symbol. "DJT."

Trump Media & Technology Group common stock will trade under the ticker symbol. "DJT."

Trump Media & Technology Group’s common stock will trade under the symbol “DJT.”

Donald Trump’s wealth has It rose to $6.4 billion thanks to the company’s IPO. It does so through a so-called special purpose acquisition company to merge with the Trump firm that owns his Truth Social platform.

After a jump in his stock price in recent days, Trump’s net worth has increased by a staggering $4 billion, adding to his golf, real estate and brand empire.

Trump, who faces four criminal trials in his race for the US presidency, has been struggling to raise money for his campaign and legal expenses.

Meanwhile, a pause on a ruling that would have prevented New York state authorities from seizing his assets gave Trump some financial breathing room as he tries to build a war chest for his campaign and keep his real estate empire intact.

The deal will inject $300 million in cash into Truth Social, which had lost $10.6 million on its operations in the first nine months of 2023.

TMTG was among the 15 most actively traded stocks on the Nasdaq as of 7:06 a.m. ET.

The company also offers a way for Trump supporters to bet on his resurgence as a political figure, as evidenced by shares of shell company Digital World Acquisition nearly tripling in value this year.

One Reddit user, Chester-Ming, posted “(Trump’s) hype has the potential to make up for everything: shitty fundamentals, insane dilution, and more,” on an investor forum of 15 million wallstreetbets, although the user warned that Trump could potentially cut back on his bet.

Trump seeks to return to the White House (AP)

Trump seeks to return to the White House (AP)

Trump seeks to return to the White House (AP)

Digital World said in a filing last month that Trump could divest his stake in Truth Social and stop participating in its management depending on how his presidential bid goes.

The special purpose acquisition firm signed its merger agreement with Trump’s company in October 2021 and has since been the target of investigations by the US Department of Justice.

In July of last year it reached an $18 million settlement with the US securities regulator for inaccurate disclosures.

Shareholders voted in favor of the deal last week, more than a month after the regulator gave the deal the green light.

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