Trump Media & Technology Group’s Remarkable Market Performance
Continuing its upward trajectory, Trump Media & Technology Group (TMTG) saw its shares soar by 17% on Wednesday, marking a significant extension of gains following a stellar Nasdaq debut. The surge is largely attributed to the enthusiasm of retail investors and ardent supporters of the former President, Donald Trump.
The company behind the social network Truth Social has witnessed its shares increase by over 30% since it commenced trading on Wall Street this past Tuesday. This impressive market entry was facilitated through a merger with a blank-check company already listed on the Nasdaq. As the stock price reached $67.69, TMTG’s market capitalization hit an impressive $9.1 billion, which in turn has propelled the value of Trump’s stake to beyond the $5 billion mark.
Despite the current market excitement, Susannah Streeter, head of money and markets at Hargreaves Lansdown, cautions that “
Truth Social’s user base stands at approximately 8.9 million sign-ups, a figure that has not been broken down into active users, which remains undisclosed. This is in stark contrast to other social media platforms like X, which reported 238 million daily active users as of June 2022, and Reddit (RDDT.N), with 73 million active users. Interestingly, Reddit’s market valuation mirrored that of TMTG on Wednesday, even as it experienced a 10% decline on its fifth day of trading since its own Wall Street introduction.
The alliance between Digital World Acquisition Corp and TMTG has resulted in a staggering 600% surge since their merger announcement back in 2021. This remarkable performance has solidified TMTG’s position among the ranks of Wall Street’s “meme stocks,” a term used to describe stocks that gain popularity through social media and online forums rather than traditional market fundamentals.