Trump Media & Technology Group’s Market Surge Continues
Amidst a flurry of activity on Wall Street, Trump Media & Technology Group (TMTG) experienced a notable 17% surge in its shares on Wednesday. This uptick marks a continuation of the company’s impressive performance following its stellar Nasdaq debut. The climb in stock value is largely attributed to the enthusiastic participation of retail investors, many of whom are supporters of the company’s figurehead, former President Donald Trump.
The ascent of TMTG’s shares is not just a two-day phenomenon. Since the commencement of trading on Tuesday, facilitated by a merger with a special purpose acquisition company (SPAC), the shares have seen an overall increase of over 30%. The current share price stands at $67.69, which places TMTG’s market capitalization at a robust $9.1 billion. This valuation has significantly boosted the worth of Trump’s stake in the company to an excess of $5 billion.
Despite the current market enthusiasm, Susannah Streeter, head of money and markets at Hargreaves Lansdown, cautions that the road ahead might be bumpy. She predicts, “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.”
TMTG’s social platform, Truth Social, boasts approximately 8.9 million sign-ups to date. However, it remains tight-lipped about the number of active users engaging with the platform. This stands in contrast to other social media giants like X, which reported 238 million daily active users as of June 2022, and Reddit, with its 73 million active users. Interestingly, Reddit’s market value paralleled TMTG’s on Wednesday, even as it experienced a 10% decline on its fifth day of trading since its own debut.
The partnership between Digital World Acquisition Corp and TMTG has been nothing short of meteoric, with stock prices soaring over 600% since their merger was announced in 2021. This dramatic rise has firmly established TMTG as one of the market’s meme stocks—a term used to describe stocks that gain popularity through social media and online forums rather than traditional market fundamentals.