(Daily360.com) The sale of stock shares for Donald Trump’s Truth Social parent company performed very well in early trading. Trump Media & Technology Group began trading as DJT on the Nasdaq, stock exchange on March 26. It merged with a company called Digital World Acquisition Corp the prior day for the purpose of becoming publicly traded.
Prior to trading Trump Media was given a $6.8 billion valuation. If the trend of early sales remains strong that number may soon be re-evaluated and elevated. Trump owns just under 60% of Trump Media and the brisk stock sales greatly increase his personal wealth portfolio. The spike was so great that it catapulted Trump back into Bloomberg’s top 500 billionaire index.
Insiders say the majority of DJT buyers are small investors who are likely trying to support the former president. Many see his court battles as political persecution and are looking to show solidarity with the GOP’s 2024 presidential candidate. Financial analysts have concerns about the staying power of Trump Media due to its lack of professional investors and growth potential. They say Trump Media lost nearly $50 million in its first year of existence while bringing in less than $4 million profit over the same period. The company has paid $37.7 million in interest expenses and cited the typically high failure rate of new social media platforms in its regulatory filing.
Much of the future success for the company depends on Trump himself. Truth Social shows about five million active users which although impactful are far less than the billions of users other platforms like TikTok and Facebook have. If Trump were ever to disengage from the platform for any reason, the long term prognosis would not be positive.
Forecasters are attempting to tie Trump’s controlling interest in the company as a potential problem. They wonder if he could decide for some reason to make a decision in his own best interest rather than that of the shareholders which could harm the company. In the present, the stock is strong and trading well to the benefit of both Trump and its shareholders.
Copyright 2024, Daily360.com
