OPINION: This article may contain commentary which reflects the author's opinion.
The stock market performance of Trump Media & Technology Group (TMTG) after last week’s merger and public offering on the Nasdaq exchange surpassed expectations when it soared nearly 25 percent in value.
TMTG, which is the parent company of Truth Social, began trading on NASDAQ under the ticker symbol DJT on March 26 after merging with Digital World Acquisition Corp. (DWAC). On Monday, shares of DWAC closed at $49.95. By Thursday, TMTG was trading at $61.96, representing a rise of over 24 percent. The stock market remained closed on Friday due to Easter, The Epoch Times reported.
Former President Trump owns 78.75 million shares in TMTG, a company whose shares are currently valued at $61.96 each. This means that his stake in TMTG is worth approximately $4.87 billion, while the company’s total market capitalization is approximately $8.39 billion. As of March 30, President Trump’s net worth was estimated to be $7.48 billion, which puts him at the 350th spot among the world’s 500 richest individuals.
The stock’s performance has surpassed expectations, though analysts had anticipated a negative performance. Critics have highlighted that TMTG has yet to turn a profit, with the company reporting only $3.3 million in revenue between January and September 2023. During the same period, it incurred losses amounting to $49 million.
TMTG’s fate is closely linked to that of President Trump, as confirmed by DWAC in a November filing with the U.S. Securities and Exchange Commission (SEC). In the filing, the company stated that if President Trump were to stop dedicating “significant” time to Truth Social, TMTG’s business would be negatively impacted.
“TMTG’s success depends in part on the popularity of its brand and the reputation and popularity of its Chairman, President Donald J. Trump. The value of TMTG’s brand may diminish if the popularity of President Trump were to suffer,” it said.
“Adverse reactions to publicity relating to President Trump, or the loss of his services, could adversely affect TMTG’s revenues, results of operations, and its ability to maintain or generate a consumer base,” the filing added.
Truth Social received a major boost early last month as a surge of users flooded the platform to watch Trump respond in real-time to President Joe Biden’s angry, divisive State of the Union Address.
The platform was so overwhelmed that, at times, users experienced intermittent delays trying to access it, Just the News reported.
“Trump uses his platform exclusively for his social commentary, making Truth Social the only social media site that hosts content from both Trump and Biden. Biden’s campaign recently opened up an account on Truth,” the outlet noted. “Trump essentially live-blogged his responses to Biden’s speech on the platform, starting with an opening salvo on Biden starting his speech late.”
Here are some of Trump’s responses:
“That may be the Angriest, Least Compassionate, and Worst State of the Union Speech ever made. It was an Embarrassment to our Country!”
“He’s done nothing for Israel compared to what I have done. It’s only words he speaks, not TRUTH!”
“He made Iran RICH. This is why we have the problems in the Middle East. With me, Iran was BROKE. He is the reason that the Middle East is blowing up!”
“Biden’s speech last night is getting ‘panned’ all over the World. Only the Radical Left lunatics are trying to make the best of it. It took him 41 minutes to talk, briefly, about Immigration and the Border, on the topic of which he was very weak. No talk of weaponization against his very calm and nice opponent. Angry as hell, this guy is a PSYCHO!”
“The Fake News Media is taking Crooked Joe Biden’s anger, and calling it ‘fiery.’ That’s why they’re the Fake News, and there’s nobody like them!”
“The Story is that he got through it, he’s still breathing, and they didn’t have to carry him out in a straitjacket. Other than that, he did not do a very good job!”
