Former President Donald Trump’s social media platform, Truth Social, made its stock market debut and saw its stock price surge by more than 40% on its first day of trading. The parent company, Trump Media & Technology Group, went public under the ticker DJT, with a market value of about $6.8 billion. Trump’s stake in the company was worth about $4 billion, despite the platform’s high valuation given its financial performance, with millions in losses and minimal revenue.
The public listing was made possible through a merger with Digital World Acquisition, a special purpose acquisition company. Trump’s net worth received a significant boost, though he is restricted from selling his shares for the next six months. Truth Social’s ticker, DJT, was chosen strategically to potentially enhance the stock’s performance, as research suggests that familiar and memorable ticker symbols can positively impact investor perception.
Digital World Acquisition is a SPAC, a type of shell company created to acquire or merge with private companies to take them public. Truth Social’s launch came after Trump was banned from mainstream social media platforms following the January 6 Capitol attack. Despite the platform’s high valuation and mixed financial performance, it has gained support from loyal Trump supporters and investors.
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