The long-awaited debut of Donald Trump’s media company on the stock market has been met with a surge in shares, reaching an opening price of over $70 per share. This gives the company a market value of over $9 billion, bringing in over $200 million for Trump Media & Technology Group. However, analysts are questioning the valuation of the company due to its flagship platform, Truth Social, only generating $3.3 million in revenue in the first nine months of last year and resulting in losses of nearly $50 million.
Despite claims of 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. However, 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.
The merger between Trump Media and Digital World Acquisition Corp was first announced in 2021 and was delayed due to government investigations earlier this year before moving forward. The majority of Digital World shareholders were individual investors who were reportedly Trump supporters. Despite lingering questions about the company’s actual value and operational performance, this successful listing on the stock market marks a significant milestone for Trump Media.
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