Trump Media & Technology Group’s Market Surge Continues
Following a stellar Nasdaq debut, shares of Trump Media & Technology Group (TMTG) saw a significant uptick, with a 17% surge on Wednesday. This climb marks a continuation of the positive momentum from the previous day, largely driven by retail investors and ardent supporters of the former President Donald Trump.
The company behind the social network Truth Social has experienced a notable increase in its stock value, with shares soaring over 30% since Tuesday. This impressive performance came after TMTG entered the stock market through a merger with a blank-check company. The surge has pushed the stock price to $67.69, ballooning TMTG’s market capitalization to an impressive $9.1 billion. Consequently, the value of Trump’s stake in the company has now exceeded $5 billion.
However, financial experts anticipate a bumpy road ahead. Susannah Streeter, head of money and markets at Hargreaves Lansdown, predicts that the current buying frenzy might not sustain as investors begin to scrutinize the company’s fundamentals more closely. Despite this, Truth Social has managed to garner approximately 8.9 million sign-ups, although it has yet to disclose the number of active users engaging with the platform.
In contrast, other social media giants like X have reported 238 million daily active users as of June 2022. Meanwhile, Reddit, known for its vibrant community, boasts 73 million active users. Interestingly, on the same day as TMTG’s surge, Reddit’s stock value took a 10% dip, aligning its market value closely with that of TMTG.
The partnership between Digital World Acquisition Corp and TMTG has resulted in a staggering 600% increase in stock value since their merger announcement in 2021. This dramatic rise has placed TMTG among the ranks of meme stocks, a category of stocks that have gained popularity and value through social media and retail investor enthusiasm.