Shares of President Donald Trump’s media company soared more than 50% at the open on Tuesday, the first day investors could own a piece of the former president’s social media platform Truth Social.
Trump Media & Technology Group began trading on the Nasdaq index under the ticker DJT, the initials of Donald John Trump, and its stock price rose sharply to a per share by 10:30 a.m. ET. The stock fell to around $71, 42% higher than its closing price. Monday price.
Mr. Trump owns a majority of DJT stock, with about 79 million shares, increasing its value to about $5.9 billion.
The stock’s surge was fueled by news that President Trump was able to secure a significantly reduced bail amount of $175 million in a civil fraud case.
However, demand for the stock is heating up even though Truth Social lost $10.6 million in business in the first nine months of 2023.
Great Hill Capital chairman Thomas Hayes said: “The valuation of this business is high relative to its underlying fundamentals, but we don’t expect it to be in that position in the short term.” Ta.
“This valuation may be more representative of the enthusiasm of Trump supporters than a reasonable estimate of the underlying business outlook.”
The ex-president’s soaring net worth has landed him a spot on the Bloomberg Billionaires Index, valuing his fortune at $6.5 billion before the opening bell on Tuesday.
The newly formed company is the result of a merger with blank check company Digital World Acquisition Corp., whose shareholders approved the move Friday.
The DJT ticker was last used in the 1990s, when shares of President Trump’s hotel and casino company traded on Wall Street.
The company also offers a way for Trump supporters to bet on Trump’s resurgence as a politician, as DWAC stock has nearly tripled in value this year.
As Monday’s deadline to pay the $500 million bond approaches, President Trump appears to be on the brink of financial ruin.
However, the New York Court of Appeals agreed to suspend collection of the $454 million civil fraud judgment if he pays $175 million within 10 days.
However, Trump cannot tap into his newfound wealth from DJT because he is under a six-month lock-up restriction that prohibits him from selling his stock or borrowing money.
President Trump has pledged to post $175 million in bail to prevent the state from seizing the would-be Republican presidential nominee’s assets while he appeals his case.
The appeals court also ruled against a trial judge who barred President Trump and his sons Eric Trump and Donald Trump Jr., executive vice presidents of the family company, from holding corporate management positions for several years. Other aspects of the judgment were also suspended.
Overall, the order was a significant victory for the former Republican president as it protects the real estate empire that catapulted him into the public eye.
The incident comes just before New York Attorney General Letitia James (D) is expected to launch an effort to collect the judgment.
Trump, who was attending a separate hearing in his criminal hush money case in New York, welcomed the ruling and said he plans to post bonds, securities or cash to cover the $175 million total in the civil case. He said that.
Speaking in the hallway of the courthouse, Trump reiterated his frequent complaints about Civil Judge Arthur Engoron and the penalties he has imposed.
President Trump claimed that the fraud scandal was hurting business in New York, saying, “What he did was too bad and should never be allowed to happen again.”
Meanwhile, James’ office noted that the judgment remains in effect even if collections are suspended.
“Donald Trump remains accountable for his extraordinary misconduct,” the office said in a statement.
