The actions of DJT, property of Trump Media and Technology Group (TMTG)the umbrella corporation of the social network Social Truth, They rose 16.10%, to $57.99, although the closing price was much lower than the level reached during the session.
“I love Truth Social, I love the truth,” Trump said on Tuesday about its network, created in 2022, to celebrate the success of the shares on the Nasdaq.
The debut of Donald Trump’s social network on the stock market
Shortly after the opening of trading on Wall Street, DJT shares, in high demand, had to be suspended for a few minutes before resuming trading.
On Friday, a general meeting of the shell company Digital World Acquisition Corp (DWAC), a listed vehicle whose purpose is to allow another company to reach the stock market more quickly, had voted in favor of a fusion with TMTG, owned by Trump.
The magnate and former president of the United States is the main shareholder of TMTG and will control several tens of millions of shares in the new company.
According to different estimates, Its participation is valued on paper at around US$4.5 billion.given the current stock price.
However, several analysts question the solidity of this assessment.
Trump Media generated just $3.4 million in sales in the first nine months of 2023according to CNN, while its losses amounted to $49 million.
“In the case of DJT, the stock is politically driven,” said Steve Sosnick, chief strategist at Interactive Brokers.
“It is not absurd to think that a large number of followers” of Trump’s MAGA (Make America Great Again) movement “are voting for their favorite candidate with their wallets,” the analyst added.
In any case, This IPO represents a breath of fresh financial air for the former president (2017-2021), persecuted on several judicial fronts under various accusations.
On Monday, New York courts eased financial pressure on the future presidential candidate by reducing his bail in a civil suit to $175 million, in a case involving a black payment to a former porn star to buy his silence at the end. of the 2016 election campaign.
However, it was rejected to further postpone the deadline for his historic criminal trial, which is scheduled to begin on April 15.
Source: Ambito
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