Donald Trump’s social media platform, Truth Social, is now trading on the stock market under the ticker DJT, which stands for Donald J. Trump. The parent company, Trump Media & Technology Group, went public through a merger with Digital World Acquisition, a special purpose acquisition company (SPAC). Prior to trading, the company had a market value of around $6.8 billion, with Trump owning about 79 million of the 135 million outstanding shares, making his stake worth about $4 billion.
Despite its high valuation, Truth Social has only generated just over $3 million in revenue during the first nine months of 2023, making it a pricey investment for shareholders. Trump’s net worth has received a significant boost with Truth Social going public, although he currently cannot sell his shares or use them as collateral for loans for the next six months. He is also facing hefty legal judgments, including a $454 million civil fraud judgment and an $83.3 million defamation trial loss.
The reason behind Truth Social’s ticker symbol, DJT, comes from research that suggests familiar and easy-to-pronounce names can positively impact stock performance. Trump’s initials have been used as the ticker symbol in hopes of attracting investors and boosting the company’s performance. The merger with Digital World Acquisition, a SPAC, allowed Truth Social to go public and become available for trading on the stock market.
The decision to launch Truth Social was driven by Trump being banned from major social media platforms following the Jan. 6, 2021, attack on the Capitol. The platform aims to provide a space for conservative voices and supporters of Trump to share their views without facing censorship or restrictions. Despite facing criticism and legal challenges, the platform has gained attention and interest from investors, leading to its successful public listing on the stock market.
