Trump's social media company starts trading on Nasdaq with a market value of almost $6.8 billion
As Donald Trump’s social media company begins trading publicly, would-be investors might ask themselves if the stock is too pricey and potentially too volatile
NEW YORK (AP) — As Donald Trump’s social media company begins trading publicly on Tuesday, would-be investors might ask themselves if the stock is too pricey and potentially too volatile.
Trump Media & Technology Group Corp. was acquired Monday by a blank-check company called Digital World Acquisition Corp. Trump Media, which runs the social media platform Truth Social, now takes Digital World’s place on the Nasdaq stock exchange.
Trump Media debuts with a stock price near $50 and a market value of about $6.8 billion. Many of Digital World’s investors were small-time investors either trying to support Trump or aiming to cash in on the mania, instead of big institutional and professional investors. Those shareholders helped the stock more than double this year in anticipation of the merger going through.
They’re betting on a company that has yet to turn a profit. Trump Media lost $49 million in the first nine months of last year, when it brought in just $3.4 million in revenue and had to pay $37.7 million in interest expenses. In a recent regulatory filing, the company cited the high rate of failure for new social media platforms, as well as the company’s expectation that it will lose money on its operations “for the foreseeable future” as risks for investors.
