

Donald Trump’s Truth Social inventory worth skyrocketed throughout its inventory market debut, rising almost 50% by Tuesday afternoon.
The mother or father firm of Reality Social, Trump Media & Know-how Group, went public Tuesday morning under the ticker DJT, brief for Donald J. Trump. The inventory was buying and selling at $74.32 per share as of 1:57 p.m. ET, up greater than $24.
The general public itemizing was made doable by Trump Media’s merger with Digital World Acquisition, a special purpose acquisition company, or SPAC. Digital World’s shareholders voted in favor of the merger Friday, and Trump Media took Digital World’s place on the Nasdaq on Tuesday.

How a lot is Reality Social value?
Earlier than buying and selling opened Tuesday, Reality Social’s mother or father firm had a market worth of about $6.8 billion. As a result of Trump owns about 79 million of the 135 million excellent shares, his stake within the firm was value about $4 billion.
It’s a pricy valuation, particularly for an organization that has racked up tens of tens of millions of {dollars} in losses since its 2021 launch and generated simply over $3 million in income through the first 9 months of 2023.
Compared, Reddit ‒ a social media platform that introduced in additional than $800 million in income in 2023 ‒ was valued at roughly $6.4 million for its IPO final week. Its inventory was buying and selling at $70.90 as of 1:16 p.m. ET.
Whereas it is “arduous to imagine” that Reality Social and Reddit are shut in valuation, Trump’s social media firm has been bolstered by investments from loyal Trump supporters, stated Derek Horstmeyer, a finance professor at George Mason College in Virginia.
“It is arduous to provide you with any affordable metrics that will get you to this valuation,” Horstmeyer stated.
What’s Trump’s web value?
Reality Social going public means an enormous increase to Trump’s web value, at the least on paper.
Trump is just not allowed to promote his shares or use them as collateral for a bond for the following six months. He would wish approval from the Trump Media board to carry that restriction.
Trump has been ordered to submit a $175 million bond as he appeals the complete $454 million civil fraud judgment towards him. He has additionally been ordered to pay $83.3 million after a defamation trial loss to recommendation columnist E. Jean Carroll.

Why is Reality Social’s ticker DJT?
Analysis exhibits that acquainted names, similar to a former president’s initials, might help an organization’s inventory efficiency.
One 2006 examine by Princeton University psychologists discovered that shares with tickers that are easier to pronounce are likely to carry out higher within the first few days of buying and selling. One other examine from Pomona College in 2019 verified earlier analysis that discovered intelligent tickers are likely to carry out higher, partly as a result of they’re extra memorable to buyers.
What’s Digital World Acquisition?
Digital World is a SPAC, also known as a blank check company. These publicly traded shell firms exist to amass or merge with personal firms and take them public.
Reality Social’s merger with Digital World was first announced in 2021, when the number of companies going public through SPACs surged. The funding automobiles have since faced criticism for being bad deals for retail buyers.
Why did Trump launch Reality Social?
Reality Social was based after Trump was booted from main social media platforms following the Jan. 6, 2021 assault on the Capitol.
Contributing: Jessica Guynn, USA TODAY