Trump Media & Technology Group’s Remarkable Market Performance
Continuing its impressive performance, Trump Media & Technology Group (TMTG) saw its shares soar by 17% on Wednesday. This rise marks a continuation of the company’s success following its stellar Nasdaq debut. The surge is largely attributed to retail investors, many of whom are supporters of the company’s figurehead, former President Donald Trump.
The momentum for TMTG, which includes the Truth Social social network under its umbrella, has been building since Tuesday. The company’s shares have witnessed an overall increase of over 30% since they started trading on Wall Street. This was made possible through a merger with a special purpose acquisition company (SPAC), also known as a blank-check company, which was already listed on the Nasdaq.
With the stock price reaching $67.69, TMTG’s market capitalization has soared to $9.1 billion. This substantial valuation has significantly increased the value of Trump’s stake in the company to more than $5 billion. However, experts like Susannah Streeter, head of money and markets at Hargreaves Lansdown, caution that the stock may face significant volatility in the future as the initial buying frenzy could subside and investors start to scrutinize the company’s fundamentals more closely.
Truth Social’s user base currently stands at approximately 8.9 million sign-ups, a figure that has not been broken down into active users, unlike other social media platforms. For context, platform X reported 238 million daily active users as of June 2022, while Reddit boasts 73 million active users. Interestingly, Reddit’s stock market value paralleled that of TMTG’s on Wednesday, even as it experienced a 10% decline during its fifth day of trading since its own Wall Street debut last week.
The partnership between Digital World Acquisition Corp and TMTG has resulted in a staggering 600% surge since their merger was first announced in 2021. This remarkable trajectory has positioned TMTG among the ranks of Wall Street’s infamous meme stocks, a category known for their volatile trading patterns and popularity among retail investors.
