The share price of Donald Trump’s social media company, Trump Media & Technology Group, jumped by more than 50% minutes after it began public trading under the ticker DJT on Tuesday morning. Trading was briefly halted due to volatility before resuming, with more than 6.5 million shares in Trump Media changing hands by 9:50 a.m. The ticker debuted on the NASDAQ stock market nearly three decades after the former president used it to launch his publicly traded hotel and casino company in 1995. Despite reporting less than $3.5 million in revenue over the first three quarters of 2023, the company’s merger with Digital World Acquisition Corp. added almost $4 billion in paper profits to Donald Trump’s net worth, giving Trump Media a potential market valuation of $6 billion at the opening bell on Tuesday.
Trump’s notoriety has helped make the Trump Media deal with DWAC the highest profile SPAC merger ever. Shareholders are hopeful that the company’s Truth Social app platform will grow significantly enough to turn a profit, with the possibility of even more growth if Trump is elected president in November. However, Trump Media, like its predecessor Trump Hotels and Casino Resorts, is currently operating at a loss. Trump Media reported $49 million in losses for the first nine months of 2023, more than 14 times the revenue it generated in the same period.
When Trump Hotels and Casino Resorts went public in 1995 under the DJT ticker, it made headlines and initially made money for Trump personally. Trump received over $44 million in salary from the company over a decade despite its repeated failures to turn a profit. The company eventually filed for bankruptcy in 2004 after losing $1 billion, the same year DJT was delisted from the New York Stock Exchange. Trump defended the bankruptcy in a 2004 interview, calling it a success that worked better than other alternatives and describing it as a technical issue that came together in the end.
The company’s closing price on Monday under the DWAC ticker was just under $50 per share, with the stock soaring more than 35% after a court reduced the bond amount Trump had to post to pause collection on a business fraud judgment. Trump Hotels and Casino Resorts also experienced success initially when it went public at $14 per share in 1995, making money for Trump for several years. However, the company eventually faced financial difficulties and filed for bankruptcy in 2004. Despite this setback, Trump maintained that the bankruptcy was not a failure but rather a successful alternative that came together in the end from a technical perspective.
Trump Media and Technology Group’s market valuation could reach $6 billion at the opening bell on Tuesday, despite the company’s reported losses and low revenue. The speculation surrounding the potential success of the Truth Social app platform and future growth opportunities, particularly if Trump is elected president, has generated interest among shareholders. However, the company’s current financial status mirrors that of Trump’s previous company that traded under the DJT ticker symbol, which also struggled to achieve profitability. The story of Trump’s ventures in the public trading market reflects a mix of initial success, ongoing challenges, and the potential for future growth and success based on market speculation and personal notoriety.
