Former President Donald Trump's social media company got off to a fast start in its stock market debut on Tuesday.
Shares of Trump Media & Technology Group, Truth Social's parent company, soared more than 50% in the first few minutes of trading. The quick action triggered a five-minute trading halt that exchanges use to dampen volatile stock price movements.
Interest remained high for most of the day, although the stock slumped toward the end of trading, ending the day about 16% higher. The company was also one of the most actively traded stocks on the Nasdaq exchange, according to CNBC data.
President Trump appeared to congratulate the stock's performance in a post on his platform late Tuesday morning.
Shareholders of shell company Digital World Acquisition Corporation (DWAC) voted Friday to approve a merger with President Trump's social media company. The long-anticipated deal effectively puts Trump Media & Technology Group on the public market, making it easier for people to buy and sell the company's stock. DWAC stock has been trading since September 2021.
The stock, which currently trades under the ticker DJT, is being closely watched because its fate could have a major impact on President Trump's strained finances. According to Bloomberg, the former president's net worth, at least on paper, is now over $6 billion.
Trump has 10 days left to post $175 million bail for sentencing in his civil fraud trial in New York, reduced from $464 million on Monday. President Trump said Friday he has at least $500 million in cash.
Even if Mr. Trump sees a windfall from DJT stock, it will take some time. As part of the merger, he will not be able to sell his shares for six months, but that could change if the board votes to allow him to liquidate some of his shares.
There are also doubts about the company's financial foundation. Trump Media lost more than $49 million in the first nine months of last year while generating nearly $3.4 million in revenue, according to the latest financial data available. Company X, formerly known as Twitter, generated approximately $2.5 billion in revenue last year.
