Trump’s Social Media Company Sees Gains on First Day of Nasdaq Trading

( – Trump Media and Technology Group Corporation recently completed its merger with Digital World Acquisition Corporation Trump Media, officially putting Truth Social on the public trading market. The social media company saw a 16% gain on its first day of Nasdaq trading, with shares closing at $57.99.

Trump Media’s first official day of Nasdaq trading was March 26, and its impressive opening pushed its estimated market value to $7.85 billion. Former President Donald Trump’s 60% ownership in the company, currently worth about $4.6 billion, also boosted his estimated worth.

Truth Social began in 2022 after other major platforms temporarily banned Trump from using their apps in response to his alleged actions on January 6, 2021. The website has become the former president’s go-to for interacting with his followers and airing his grievances. It currently has about 5 million active users — a number that looks substantial at first glance but pales in comparison to Facebook’s $3 billion or even TikTok’s $2 billion members. Long-term growth will be essential to the company’s success, which means Truth Social might need to find ways to appeal to the rest of the mainstream if it’s going to survive.

Some experts fear the inflated stock value won’t last. They point to previous bumps, such as those GameStop and AMC Entertainment experienced in 2021, when craze-fueled mass purchases caused significant—but fleeting—spikes in share prices. If Trump Media follows in their footsteps, the company’s value could be standing on thin ice.

The investment could still go either way for shareholders, with Trump’s popularity being one of multiple deciding factors. Dan Alexander, a senior editor at Forbes, predicts Trump might cash in on his holdings to pay off his mounting legal debts. If he does, the stock’s value could tank as quickly as it rose.

The former president cannot unload his shares for the next six months due to lock-up provisions, however, so unless something else happens to reduce its value, the stock is probably relatively safe for the moment.

~Here’s to Our Liberty!

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