Trump Media’s market value was USD 6.8 billion before trading, likely to increase further with early gains in shares holding.
Trump’s Social Media Stock Soars on Nasdaq
Donald Trump’s social media company’s shares surged by nearly 50% on Nasdaq’s first trading day. This boosts Donald’s and his supporters’ stakes in the company. Trump Media, with its platform Truth Social, replaced Digital World Acquisition Corp. on Nasdaq.
Before trading, Trump Media was worth around USD 6.8 billion. Donald owns almost 60% of the company. The shares, trading as “DJT,” rose by 47% to USD 73.50 by 9:55 am ET.
Investors in Trump Media are mostly regular folks, not big pros. They’ve pumped up Digital World’s stock, hoping for big returns. But the ride might be rough. Trump Media’s profit outlook is fuzzy. They lost $49 million last year, making only $3.4 million.
Their expenses were sky-high at $37.7 million. In filings, they admit it’s tough for new social media. They expect to bleed money for a while. It’s risky for investors.
Trump Touts Truth Social’s Success
Trump Media launched Truth Social in 2022. Donald praised its success after a court appearance.
He faces a criminal case in New York. The case involves hush money payments. These were made to cover up marital infidelity claims. Donald says Truth Social is thriving. However, user numbers remain undisclosed. The company is now public.
Trump Media, based in Palm Beach, Florida, depends heavily on President Donald’s popularity. If Trump reduces his involvement, the company would suffer.
Legal issues Donald faces could harm Trump Media and Truth Social. Despite having 5 million users, they lag behind TikTok and Facebook.
Other alt-tech rivals like Parler and Gettr have fewer users. Parler plans a comeback after being offline. Donald’s legal battles and political ambitions pose risks to Trump Media’s success.
How many users does Truth Social have?
Truth Social has around 494,000 monthly active users in the US, much less than Twitter’s 75 million and Facebook’s 142 million.
How much is Truth Social selling for?
Before trading began, Truth Social’s parent company had a value of about $6.8 billion, with Donald’s stake worth around $4 billion.
Is Truth Social free?
Yes, Truth Social is free to use. It’s based on Mastodon software but with some features removed.
Is Truth Social available on Google Play?
Yes, you can find Truth Social on Google Play Store and download it.
What is Truth Social used for?
Truth Social is similar to Twitter. Users can post, follow others, send messages, and see ads called “sponsored truths.”
What is Donald Trump’s social media company?
Donald’s social media company is called Trump Media. It operates Truth Social, which debuted on Nasdaq with a stock price of around $50 and a market value of $6.8 billion, trading under the symbol “DJT.”
What is Truth Social?
Truth Social is a social media platform similar to Twitter. Users can make posts called “Truths” and share other users’ posts called “ReTruths.”
Who helped create Truth Social?
Two members of Donald’s TV show “The Apprentice,” Wes Moss and Andy Litinsky, were central to its founding.
How did Truth Social become publicly traded?
A company called Digital World Acquisition Corp (DWAC), with links to China, helped Truth Social become publicly traded.
Was there any controversy surrounding the funding of Truth Social?
Yes, there were concerns about financial ties to Russia and China, as well as investigations into investors’ backgrounds.
What happened during Truth Social’s early promotion?
There was a leaked beta version, leading to trolling and parody accounts before the official launch.
Did Truth Social receive financial support from Russia?
Yes, there were loans totaling $8 million from entities connected to Russia, which raised questions and investigations.
What were some findings of the federal probe into investors of DWAC?
It uncovered connections to attempts to move assets from Russia, Ukraine, and China, raising further concerns.
Read More: No $454 Million Bond For Trump In New York Fraud Case