Donald Trump's social network soars more than 45% on its first day on the Nasdaq

Donald Trump's social network soars more than 45% on its first day on the Nasdaq

The company has soared more than 50% (at best peak) in the first minutes of the session, which has caused a brief interruption in the trading of its shares.

Trump Media & Technology Group (TMTG) debuts in style on Wall Street. Former President Donald Trump's company, owner of the social network Truth, soared almost 45% on its first day on the Nasdaq.

Its shares rose from US$70, which places the capitalization above US$9,000 million, despite the fact that the group's turnover did not reach US$3.5 million in the first nine months of 2023. The losses in this period were US$49 million.

The group's securities have soared by even 50% in the first moments of the session, when the high volatility they have experienced has caused interruptions in their trading. Within 20 minutes of the bell ringing, more than 6.5 million shares of the company had already been exchanged.

With this operation, Trump scores latent capital gains of US$4 billion, although the tycoon will not be able to sell Tmtg shares for six months. However, the company's board of directors could vote to allow it to dispose of these securities sooner than planned.

According to American media, among the members of the highest decision-making body will be Donald Trump Jr., former WWE executive Linda McMahon and Trump's former trade representative, Robert Lighthizer.

TMTG trades under the ticker DJT – the initials of the former president -, the same one that the hotel and casino company used when it hit the park on the New York Stock Exchange in 1995.. It declared bankruptcy in November 2004 after suffering losses of 1 billion.

The firm is the result of the merger with the SPAC Digital World Acquisition Corp (DWAC), which soared 35% on Monday after a New York court reduced the money that Trump has to deposit from $454 million to $175 million. while appealing a judgment.

In one of the TMTG documents published in the Securities and Exchange Commission (SEC), it is recognized that the legal fronts that Trump has open represent a risk for the company.

“An adverse outcome in one or more of the ongoing legal proceedings involving President Trump could negatively impact TMTG and its Truth Social platform,” the statement noted.