Trump Media & Technology Group’s Market Debut: A Milestone Amidst Uncertainty

Stock market debut of Donald Trump’s media firm sees substantial growth

As Trump Media & Technology Group formally debuted on the stock market, shares in the company surged, with each share exceeding $70 in opening trading. This price gave the company a market value of over $9 billion. Despite this, analysts are questioning the valuation of the company as Trump Media’s flagship platform, Truth Social, only generated $3.3 million in revenue in the first nine months of last year, resulting in losses of nearly $50 million. Despite claiming 8.9 million created accounts since its launch in 2022, it is unclear how many are active users.

Trump, who owns more than half of the company’s shares, is currently unable to sell his holdings for at least six months due to legal restrictions. The company’s board, which includes allies such as one of Trump’s sons, could potentially change this rule to allow him access to his windfall immediately, but analysts believe this is unlikely to happen soon. The merger between Trump Media and Digital World Acquisition Corp was first announced in 2021 and delays due to government investigations were finally resolved earlier this year, enabling the transaction to move forward.

The majority of Digital World shareholders were individual investors, many of whom were reportedly Trump supporters. This successful listing on the stock market marks a significant milestone for Trump Media despite lingering questions about the company’s actual value and operational performance.

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