Former President Donald Trump’s social media company, Trump Media and Technology Group, saw a significant increase in its stock price on Monday, reaching a valuation in the billions and making Trump even wealthier. The company’s stock, trading under the ticker $DJT, rose 12% to close at $47 per share, marking its highest close since April. This surge came after the company issued an unusual press release aimed at protecting against short sellers, providing instructions for shareholders to request their brokers exclude their shares from being used in short selling trades.
This rally marks the fourth consecutive trading session of significant gains for Trump Media as it continues its campaign against short sellers. Despite this temporary boost, it is uncertain how long this trend will last given the nature of free market principles. Trump’s net worth increased by $406 million on Monday, bringing his total fortune to $5.6 billion according to Forbes. His stake in Trump Media is valued at $3.7 billion, with an additional $1.7 billion bonus payout that has yet to be officially granted.
In a recent release, Trump Media emphasized that its shareholder base consists mainly of retail investors who support the company’s mission against censorship by Big Tech. However, it is interesting to note that Trump himself owns a majority of shares, with an equity award that could further increase his stake. The company’s market capitalization of $6.4 billion is not far from Reddit’s $7.4 billion valuation, despite differences in financial results and user base. Trump Media reportedly lost $58 million last year with revenues of $4 million, compared to Reddit’s $91 million loss on revenues of $804 million.
Trump Media’s valuation, with a price-to-sales ratio over 1,500, far surpasses that of established companies like Nvidia. The company’s anti-short selling campaign, led by CEO Devin Nunes, has created controversy with accusations against firms like Citadel Securities. Despite criticism, Trump Media’s stock continues to rise, leading to a significant increase in Trump’s wealth. As the company navigates its first few weeks as a publicly traded entity, its performance and strategies will continue to be closely monitored by investors and industry experts.
In conclusion, Trump Media and Technology Group’s recent surge in stock price and valuation has once again made former President Donald Trump a wealthier individual. The company’s ongoing efforts to combat short sellers have contributed to its increasing stock value, although the long-term sustainability of this growth remains uncertain. With Trump’s substantial stake in the company and continued controversy surrounding its operations, the future of Trump Media will be closely watched by market observers and investors alike.
