DJT Ticker Debut Leads To 50% Jump In Trump Media Stock

(CTN News) – Within minutes of DJT, Donald Trump’s social media company began public trading on Tuesday. Its shares jumped more than 50%.

Trump Media & Technology Group briefly halted trading due to volatility, but resumed around 9:40 a.m. Eastern Time. By 9:50 a.m., Trump Media shares had changed hands. 1995, the former president used it to launch his publicly traded hotel and casino company.

Nine years later, that stock was delisted. The symbol pays homage to Trump Media’s former chairman and director, as well as the 45th president of the United States.

“We believe DJT’s debut on public markets demonstrates Americans’ demand for free-speech platforms that reject the stifling censorship Big Tech imposes,” the statement says. On Monday, Trump Media completed its merger with shell company Digital World Acquisition Corp. In mid-afternoon, Trump Media had a market value of $8.4 billion. The company’s directors include Donald Trump Jr., Trump’s son, and other close Trump allies.

DWAC shareholders are expected to redeem 78.75 million shares, which could represent a 69% stake in Trump Media. At 2:30 p.m., the share price was $75.57, so that stake was worth $6 billion undiluted.

For six months, Trump can’t sell his shares. The company’s board could waive that lock-up period.

In the first three quarters of 2023, DJT Trump Media had less than $3.5 million – that’s million, not billion – in revenue, and reported losses more than 10 times that. There’s nothing on the company’s financials page.

Following a decision by a New York appeals court, the amount of bond Trump would have to post to pause collection of a business fraud judgment while he appeals dropped from $454 million to $175 million on its last day of trading Monday under the DWAC ticker.

Monday’s closing price was just under $50. With Trump’s notoriety, the Trump Media deal with DWAC was the highest-profile merger of a special purpose acquisition company.

Shareholders might hope the Truth Social platform will grow its market share enough for the company to turn a profit. If Trump is elected president, its growth will be turbocharged. At the moment, Trump Media is a money loser, just like the previous DJT company. It lost $49 million for 2023, more than 14 times its revenue.

Trump Hotels and Casino Resorts went public in 1995 under the DJT ticker at $14 per share.

For years, it made Trump money.

According to a 2016 Washington Post article, Trump got over $44 million in salary over a decade from the company.

It was the same year DJT was delisted from the New York Stock Exchange that Trump Hotels filed for bankruptcy.

In a 2004 interview, Trump told NBC News that the bankruptcy filing listed $1.8 billion in debt and the stock was trading at about 50 cents.

“This was better than the alternatives,” he said.

“It was just a technical glitch.”

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