Former US President Donald Trump’s media company, Trump Media and Technology Group (TMTG), made a strong debut on the New York Stock Exchange on Tuesday, March 26. The company, trading under the acronym DJT, saw its shares soar by 16.10% to $57.99 on its first day of trading.
The umbrella corporation of the social network Truth Social, DJT, owned by TMTG, attracted high demand as trading opened on Wall Street. Shares were briefly suspended due to the overwhelming interest before trading resumed.
Trump, who is the main shareholder of TMTG, hailed the success of Truth Social, a platform he created in 2022, and expressed his love for the truth. Despite some concerns raised by analysts about the company’s valuation, Trump’s involvement in the venture is estimated to be worth around $4.5 billion based on the current share price.
While Truth Social has become an important platform for Trump’s voice in the digital space, the company generated $3.4 million in sales in the first nine months of 2023, with losses totaling $49 million, according to CNN.
The IPO of DJT is seen as politically driven, with many supporters of Trump’s MAGA movement potentially backing the company with their investments. The successful launch of the company comes amid legal challenges faced by the former president, including a civil suit involving a payment to a former porn star and an upcoming criminal trial set to begin on April 15.
Despite the mixed reactions and the uncertainties surrounding the company, the strong start on the stock exchange represents a positive development for former President Trump as he continues to navigate various legal challenges.