Shares of Trump Media & Technology Group soared again on Wednesday, signaling further strengthening of former President Donald Trump’s financial portfolio.
The company’s shares rose 14.2% to $66.22 on Wednesday. After the merger of Trump Media and Digital World Acquisition Corp., a special purpose acquisition company formed to take Mr. Trump’s social media platform Truth Social public, the stock changed to the ticker symbol DJT on Tuesday. Trump’s initials).
The increase follows a 16% rise on Tuesday, increasing the company’s market valuation to about $8 billion. Trump’s stake (about 60% of the company) is estimated to be worth about $4.8 billion.
The rapid rise in stock prices has many on Wall Street skeptical, and investors are being ridiculed by President Trump’s critics. Some are drawing comparisons to the surge in “meme stocks” that drove up the prices of companies like AMC and GameStop several years ago.
As for whether President Trump could use the windfall to satisfy the terms of his $175 million bail appeal in a New York civil fraud case in which he was sentenced to $454 million. , there are still questions.
The stock is subject to a six-month lock-up period that prohibits Trump from selling it or using it as collateral for a loan, but he requested a waiver from the company’s board of directors. may be sought. The board will likely need to determine that a waiver is in the best interest of the company and its shareholders.
The company’s stock isn’t widely watched among Wall Street analysts, so there’s no consensus price target. Trump Media reported revenue of $3.4 million for the first nine months of 2023, compared to a loss of $49 million. Many technology startups have gone public at a loss, including Twitter, Amazon, and most recently Reddit.
