Former President Donald Trump’s social media company got off to a quick start in its stock market debut Tuesday.
Shares of Trump Media & Technology Group, the parent company of Truth Social, shot up more than 50% in its first minutes of trading. The quick move triggered a trading halt of five minutes, which exchanges use to put a check on volatile stock moves.
Shares cooled slightly after trading resumed. The stock was up about 40% on the day as of an hour into trading.
Shareholders in shell company Digital World Acquisition Corp. voted Friday to approve a merger with Trump’s social media company. The long-expected deal effectively took Trump Media & Technology Group into the public market, allowing people to easily buy and sell its stock.
The stock, which now trades under the ticker DJT on the Nasdaq exchange, is being closely watched in large part because its fortunes could have a major impact on Trump’s strained finances. The former president’s net worth, at least on paper, is now at over $6 billion, according to Bloomberg.
Trump has 10 days to post a $175 million bond for the judgment in his New York civil fraud trial — a sum that was reduced Monday from $464 million. Trump said Friday he has at least $500 million in cash.
Any windfall for Trump from DJT stock will take some time. As part of the merger, he cannot sell his shares for six months, though that could change if the company’s board of directors vote to allow him to liquidate some of his stock.
There are questions about the company’s financial footing, too. Through the first nine months of last year, Trump Media lost more than $49 million while racking up revenue of nearly $3.4 million, according to the most recent financial data available. X, the company formerly known as Twitter, did about $2.5 billion in revenue last year.
This is a developing story. Please check back for updates.
