The share price of Donald Trump’s social media company experienced a significant spike of over 50% within minutes of going public under the ticker DJT on Tuesday morning. This surge in trading led to a brief halt due to volatility, before resuming around 9:40 a.m. ET. The Nasdaq stock market saw over 6.5 million shares in Trump Media & Technology Group being exchanged by 9:50 a.m.
This event marked the return of the DJT ticker to the stock market, nearly three decades after its initial use by Trump to launch a publicly traded hotel and casino company back in 1995. Unfortunately, the former venture faced delisting from the New York Stock Exchange only nine years later, signaling a rollercoaster ride in the world of stock trading for Trump.
Trump Media’s merger with Digital World Acquisition Corp. was completed on Monday, leading to substantial paper profits of almost $4 billion added to Donald Trump’s net worth. Despite reporting revenue of less than $3.5 million in 2023, the company’s market valuation stood at around $2.5 billion in morning trading on Tuesday. This sharp contrast raises concerns about the true value behind the hype.
In stark comparison to the market valuation, Trump Media reported losses amounting to $49 million during the first nine months of 2023, far surpassing its revenue. The similarity to Trump’s previous venture, Trump Hotels and Casino Resorts, which faced similar challenges back in 1995, raises questions about the sustainability of Trump Media’s business model.
Despite facing a number of setbacks, Trump has maintained optimism about the success of his ventures, even in the face of bankruptcy filings and delisting from stock exchanges. His ability to turn failures into perceived successes has been a hallmark of his career, with him citing technicalities and superior alternatives as reasons for past shortcomings.
While shareholders may hold high hopes for the growth of Trump Media, particularly with the Truth Social app platform, the core financial indicators paint a different picture. With consistent losses and a questionable revenue stream, the future success of the company remains uncertain, especially if history is to be taken into account.
The rise and fall of Trump Media in the stock market reflect a broader pattern of volatility and uncertainty surrounding Trump’s business ventures. As the company navigates through its current challenges, it remains to be seen whether it can overcome the odds and carve out a sustainable path towards profitability. Only time will tell if Trump’s latest foray into social media will be a success story or another cautionary tale in the world of finance.
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