NEW YORK: Shares of Donald Trump’s social media company rose about 16 percent in the first day of trading on the Nasdaq, boosting the value of Trump’s large stake in the company as well as the smaller holdings of fans who purchased shares as a show of support for the former president.
Trump Media & Technology Group Corp. merged Monday with a blank-check company called Digital World Acquisition Corp. Trump Media, which runs the social media platform Truth Social, has now taken Digital World’s place on the Nasdaq stock exchange.
Shares closed at $57.99, up 16.1 percent, giving the company a market value of $7.85 billion. At one point the stock was up about 59 percent. Trump holds a nearly 60 percent ownership stake in the company, now worth about $4.6 billion.
Many of those investing in Trump Media are 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 of Digital World more than double this year in anticipation of the merger going through.
Truth Social launched in February 2022, one year after Trump was banned from major social platforms including Facebook and X, formerly Twitter, following the Jan. 6 insurrection at the US Capitol. He’s since been reinstated to both but has stuck with Truth Social.
On Truth Social Tuesday, users were posting about being shareholders or seeking tips on how to buy shares.
One user urged conservatives to “get behind the DJT stock and sent it over $100 per share” to “drive the liberals insane!” Another declared: “Get yourself a piece of #DJT stock if your a true MAGA supporter.”
A day earlier, Trump Media CEO Devin Nunes, a former House Republican, said, “As a public company, we will passionately pursue our vision to build a movement to reclaim the Internet from Big Tech censors.”
Despite the enthusiasm, investors could experience a bumpy ride. For one, they’re betting on a company with uncertain prospects of turning 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 its expectation that its operations will lose “for the foreseeable future” as risks for investors.
Research firm Similarweb estimates that Truth Social had roughly 5 million active mobile and web users in February. That’s far below TikTok’s more than 2 billion and Facebook’s 3 billion — but still higher than other “alt-tech” rivals like Parler.
However, Trump Media has said it doesn’t keep track of some numbers that rivals use as key measures of their performance, such as average revenue per user or active user accounts. It says it wants to focus on the long-term instead of “short-term decision-making.”
For that long term, though, skeptics see struggles ahead for a company that’s estimated to have far fewer users than rivals in a business where gaining a critical mass is key.
“I think there is a possibility of, sooner or later, the stock price falling by 95 percent,” said Jay Ritter, a professor and expert on initial public offerings of stock at the University of Florida’s Warrington College of Business.
Brian Dunn, director of the Institute for Compensation Studies at Cornell University, compared the fervor for Trump Media shares to the meme stock craze that boosted shares of companies such as GameStop and AMC Entertainment to exorbitant heights in 2021.
“Like any meme stock or fad, as long as there’s a greater fool to buy you out for what you paid for it, than you can continue to prosper,” Dunn said, warning that small investors “could end up holding the bag when the music stops.”
On Monday, Trump told reporters that “Truth Social is doing very well. It’s hot as a pistol and doing great.” On Tuesday, he posted “I LOVE TRUTH SOCIAL, I LOVE THE TRUTH!,” on the platform.
The company, which is based in Florida, said in a recent regulatory filing that it “is highly dependent on the popularity and presence of President Trump.” Trump Media has acknowledged that there are risks associated with Trump’s outsized influence.
If the former president were to limit or discontinue his relationship with the company for any reason, including due to his campaign to regain the presidency, the company “would be significantly disadvantaged,” it said in a filing ahead of the merger with Digital World.
Acknowledging Trump’s involvement in numerous legal proceedings, the company noted that “an adverse outcome in one or more” of the cases could negatively affect Trump Media and Truth Social.
Another risk, the company said, was that as a controlling stockholder, Trump would be entitled to vote his shares in his own interest, which may not always be in the interests of all the shareholders generally.
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Trump’s social media company gains in its first day of trading on Nasdaq
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Trump’s social media company gains in its first day of trading on Nasdaq
- Many of those investing in Trump Media are small-time investors either trying to support Trump or aiming to cash in on the mania, instead of big institutional and professional investors
Russia puts death toll from Ukrainian strike on occupied village at 27. Kyiv rejects accusation
Russian authorities said Friday that the death toll from a Ukrainian drone strike they said struck a café in a Russian-occupied village in Ukraine’s Kherson region rose to 27 people. Kyiv denied attacking civilian targets.
Svetlana Petrenko, spokeswoman of Russia’s main criminal investigation agency, the Investigative Committee, said in a statement that a Ukrainian drone strike on a café and hotel in the village of Khorly, where at least 100 civilians were celebrating New Year’s Eve overnight into Thursday, killed 27 people, including two minors. A total of 31, including five minors, were hospitalized with injuries.
A criminal probe on the charges of carrying out an act of terrorism has been opened, Petrenko said.
Kyiv denied attacking civilians. Spokesman of Ukraine’s General Staff, Dmytro Lykhovii, told Ukraine’s public broadcaster Suspilne on Thursday that Ukrainian forces “adhere to the norms of international humanitarian law” and “carry out strikes exclusively against Russian military targets, facilities of the Russian fuel and energy sector, and other lawful targets.”
Lykhovii said that General Staff has published an explicit list of targets that the Ukrainian army struck on the night of New Year’s Eve. The list did not include strikes on occupied parts of the Kherson region.
Lykhovii noted that Russia has repeatedly used disinformation and false statements to disrupt the ongoing peace negotiations.
The Associated Press could not independently verify claims made about the attack.
Russia’s accusations against Ukraine come amid a US-led diplomatic push to end the nearly four-year war in Ukraine. Earlier this week, Moscow alleged that Kyiv launched a long-range drone attack against a residence of Russian President Vladimir Putin in northwestern Russia overnight from Sunday to Monday.
Kyiv has called the allegations of an attack on Putin’s residence a ruse to derail ongoing peace negotiations, which have ramped up in recent weeks on both sides of the Atlantic.
In his New Year’s address, Ukrainian President Volodymyr Zelensky said that a peace deal was “90 percent ready” but warned that the remaining 10 percent, believed to include key sticking points such as territory, would “determine the fate of peace, the fate of Ukraine and Europe, how people will live.”
Trump’s special envoy Steve Witkoff said Wednesday that he, Secretary of State Marco Rubio and Trump’s son-in-law and adviser Jared Kushner had a “productive call” with the national security advisers of Britain, France, Germany and Ukraine “to discuss advancing the next steps in the European peace process.”
Elsewhere in Ukraine, Russia conducted what local authorities called “one of the most massive” drone attacks at Zaporizhzhia overnight.
At least nine Russian drones struck the city, damaging dozens of residential buildings and other civilian infrastructure, head of the regional administration, Ivan Fedorov, wrote on Telegram on Friday. There were no casualties, the official said.
Overall, Russia fired 116 long-range drones at Ukraine last night, according to Ukraine’s Air Force, which said that 86 drones were intercepted, while 27 more have reached their targets.
The Russian Defense Ministry reported Friday that its air defenses intercepted 64 Ukrainian drones overnight over multiple Russian regions.
Vyacheslav Gladkov, governor of Russia’s Belgorod region on the border with Ukraine, on Friday also accused Ukrainian forces of carrying out a missile strike on the city of Belgorod. Two women were hospitalized with injuries, Gladkov said. The strike shattered windows in multiple residential buildings and damaged an unspecified “commercial” facility and a number of cars, according to the official.
Svetlana Petrenko, spokeswoman of Russia’s main criminal investigation agency, the Investigative Committee, said in a statement that a Ukrainian drone strike on a café and hotel in the village of Khorly, where at least 100 civilians were celebrating New Year’s Eve overnight into Thursday, killed 27 people, including two minors. A total of 31, including five minors, were hospitalized with injuries.
A criminal probe on the charges of carrying out an act of terrorism has been opened, Petrenko said.
Kyiv denied attacking civilians. Spokesman of Ukraine’s General Staff, Dmytro Lykhovii, told Ukraine’s public broadcaster Suspilne on Thursday that Ukrainian forces “adhere to the norms of international humanitarian law” and “carry out strikes exclusively against Russian military targets, facilities of the Russian fuel and energy sector, and other lawful targets.”
Lykhovii said that General Staff has published an explicit list of targets that the Ukrainian army struck on the night of New Year’s Eve. The list did not include strikes on occupied parts of the Kherson region.
Lykhovii noted that Russia has repeatedly used disinformation and false statements to disrupt the ongoing peace negotiations.
The Associated Press could not independently verify claims made about the attack.
Russia’s accusations against Ukraine come amid a US-led diplomatic push to end the nearly four-year war in Ukraine. Earlier this week, Moscow alleged that Kyiv launched a long-range drone attack against a residence of Russian President Vladimir Putin in northwestern Russia overnight from Sunday to Monday.
Kyiv has called the allegations of an attack on Putin’s residence a ruse to derail ongoing peace negotiations, which have ramped up in recent weeks on both sides of the Atlantic.
In his New Year’s address, Ukrainian President Volodymyr Zelensky said that a peace deal was “90 percent ready” but warned that the remaining 10 percent, believed to include key sticking points such as territory, would “determine the fate of peace, the fate of Ukraine and Europe, how people will live.”
Trump’s special envoy Steve Witkoff said Wednesday that he, Secretary of State Marco Rubio and Trump’s son-in-law and adviser Jared Kushner had a “productive call” with the national security advisers of Britain, France, Germany and Ukraine “to discuss advancing the next steps in the European peace process.”
Elsewhere in Ukraine, Russia conducted what local authorities called “one of the most massive” drone attacks at Zaporizhzhia overnight.
At least nine Russian drones struck the city, damaging dozens of residential buildings and other civilian infrastructure, head of the regional administration, Ivan Fedorov, wrote on Telegram on Friday. There were no casualties, the official said.
Overall, Russia fired 116 long-range drones at Ukraine last night, according to Ukraine’s Air Force, which said that 86 drones were intercepted, while 27 more have reached their targets.
The Russian Defense Ministry reported Friday that its air defenses intercepted 64 Ukrainian drones overnight over multiple Russian regions.
Vyacheslav Gladkov, governor of Russia’s Belgorod region on the border with Ukraine, on Friday also accused Ukrainian forces of carrying out a missile strike on the city of Belgorod. Two women were hospitalized with injuries, Gladkov said. The strike shattered windows in multiple residential buildings and damaged an unspecified “commercial” facility and a number of cars, according to the official.
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