Trump Media & Technology Group’s Market Surge Continues
In a remarkable display of market momentum, Trump Media & Technology Group (TMTG) saw its shares leap by 17% on Wednesday, marking a continuation of the impressive performance that began with its Nasdaq debut. This surge is largely attributed to the enthusiasm of retail investors, many of whom are supporters of the company’s figurehead, former President Donald Trump.
The ascent of TMTG, which is behind the Truth Social social network, has been nothing short of meteoric, with the stock price climbing over 30% since it started trading. This rally was initiated through a strategic merger with a blank-check company already listed on the Nasdaq. As the stock price hit $67.69, TMTG’s market capitalization soared to $9.1 billion, significantly inflating the value of Trump’s stake to beyond $5 billion.
Despite the current investor enthusiasm, market analysts like Susannah Streeter, head of money and markets at Hargreaves Lansdown, caution about potential instability. “There is likely to be significant volatility ahead as a share buying frenzy among his supporters may wane, and investors dig deeper into the fundamentals,” Streeter noted.
Truth Social’s user base currently stands at approximately 8.9 million sign-ups, a figure that has yet to be broken down into active users—a common metric for gauging engagement on social platforms. For context, as of June 2022, Twitter reported 238 million daily active users, while Reddit boasted 73 million active users. Interestingly, Reddit’s market value paralleled TMTG’s after experiencing a 10% dip on its fifth day of trading since its own Wall Street introduction.
The partnership between Digital World Acquisition Corp and TMTG has resulted in an over 600% surge since their merger announcement in 2021. This dramatic increase has solidified TMTG’s position among the ranks of Wall Street’s meme stocks—a category known for their volatile trading patterns and strong backing from retail investors.