OAN’s James Meyers
11:00 AM -Tuesday, March 26, 2024
Former U.S. President Donald Trump’s social media company Truth Social shot off to a blistering start in its stock market debut on Tuesday, surging more than 50% at the beginning of trading.
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Trump Media & Technology Group began trading on the Nasdaq index under the ticker name “DJT,” the initials for Donald John Trump. The stock dipped from its opening spike to around $71 a share by 10:30 a.m. ET, 42% higher than its closing price on Monday.
Meanwhile, Trump owns a massive majority stake in DJT with almost 79 million shares, raising his value to nearly $5.9 billion.
Meanwhile, Trump celebrated the stock’s stellar performance with a post on his platform early on Tuesday morning.
“The valuation of the business is rich relative to its underlying fundamentals, but I would not get in front of it in the near term,” said the chairman of Great Hill Capital, Thomas Hayes, regarding the Truth Social stock.
“This valuation may be more of a proxy on the enthusiasm of supporters for Trump than a reasonable estimate of underlying business prospects,” he continued.
With the surge, the 45th president’s net worth earned him a position on the Bloomberg Billionaires Index, which valued his net-worth at $6.5 billion before Tuesday’s opening bell. The income increase comes just after a New York state appeals court agreed to hold off collection of the $454 million civil fraud judgment if he posts the reduced payment of $175 million within 10 days.
Trump has agreed to post the $175 million bond, which will stop the state of New York from taking his assets while he appeals.
However, Trump will most likely be barred from using his earned wealth from DJT for six months due to lock-up restrictions that could prevent him from selling or borrowing against his shares. Questions still remain about how the company’s financial footing will remain steadfast.
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