Donald Trump's social media firm, Truth Social, saw its stock surge about 16% on its first day of trading on the Nasdaq, elevating the value of the former president's stake in the company and those supporters who purchased shares.
Donald Trump's Truth Social Shares Increase 16%
According to the Associated Press, the merger between Trump Media & Technology Group Corp. and Digital World Acquisition Corp. on Monday led to the debut of Truth Social on the Nasdaq, replacing Digital World.
By the end of trading, shares closed at $57.99, marking a 16.1% increase and valuing the company at $7.85 billion. The stock was even up about 59% at one point.
Donald Trump's ownership stake, nearly 60%, is now estimated at $4.6 billion. Many Trump Media investors are small-time investors supporting Trump or individuals just seeking to capitalize on the market frenzy rather than significant institutional and professional investors.
According to AP, this influx of shareholders contributed to Digital World's stock increasing more than double earlier this year in anticipation of the merger.
Trump Media to Reclaim the Internet From Big Tech Censors
Truth Social emerged in February 2022, a year after Donald Trump was suspended from major social media platforms following the January 6 Capitol insurrection. The former president has since been reinstated on Facebook and X, formerly known as Twitter, but he has remained with Truth Social.
In a statement celebrating the filing, Trump Media CEO Devin Nunes, a former House Republican, said that as a public company, "we will passionately pursue our vision to build a movement to reclaim the Internet from Big Tech censors."
"We will continue to fulfill our commitment to Americans to serve as a safe harbor for free expression and to stand up to the ever-growing army of speech suppressors," he added.
However, investors may face challenges in the coming days as the company's profitability prospects remain uncertain. Trump Media reported a $49 million loss in the first nine months of last year when it had modest revenue of $3.4 million and had to pay $37.7 million in interest expenses.
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