Trump’s Truth Social stock soars in first day of trading

Trump’s Truth Social stock soars in first day of trading

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Donald Trump’s social media platform Fact Social (DJT) surged greater than 50% in its first day of buying and selling on the Nasdaq Tuesday morning.

Shares of Trump Media & Know-how Group, Fact Social’s guardian firm, had been buying and selling above $75 beneath the ticker image “DJT,” Trump’s initials, simply after the market open.

The corporate merged with particular goal automobile Digital World Acquisition Corp. (DWAC) in a deal authorized by shareholders final week. Previous to the merger, DWAC had been on the general public market since 2021.

Trump based Fact Social after he was kicked off main social media apps like Fb and Twitter, the platform now often known as X, following the Jan. 6 Capitol riots in 2021. He has since been reinstated on the platforms.

Trump will keep a roughly 60% stake in Fact Social, or almost 79 million shares. That valuation could surge to greater than $3 billion relying on buying and selling ranges.

The merger comes as the previous president faces a $454 million fraud penalty and grapples with a campaign fundraising shortfall as he gears up for a 2024 presidential rematch towards present commander-in-chief Joe Biden.

However Trump should wait earlier than cashing in his shares.

Based on the phrases of the merger, stakeholders are topic to a six-month lockup interval earlier than promoting or transferring shares. The one exception could be if the corporate’s board votes to make a particular dispensation.

Based on an SEC submitting from Digital World, Trump Media misplaced $49 million within the first 9 months of final yr and introduced in $3.4 million in income.

As Yahoo Finance’s Rick Newman identified, short interest in DWAC stock — bets that the inventory value will fall relatively than rise — was about 11% of excellent shares. To notice, common brief curiosity in public firms sits within the 3% to 4% range.

Alexandra Canal is a Senior Reporter at Yahoo Finance. Comply with her on X @allie_canal, LinkedIn, and e-mail her at alexandra.canal@yahoofinance.com.

Former President Donald Trump awaits the start of a pre-trial hearing with his defense team at Manhattan criminal, Monday, March 25, 2024, in New York. A judge will weigh on Monday when the former president will go on trial. (AP Photo/Mary Altaffer, Pool)Former President Donald Trump awaits the start of a pre-trial hearing with his defense team at Manhattan criminal, Monday, March 25, 2024, in New York. A judge will weigh on Monday when the former president will go on trial. (AP Photo/Mary Altaffer, Pool)

Former President Donald Trump awaits the beginning of a pre-trial listening to along with his protection workforce at Manhattan felony, Monday, March 25, 2024, in New York. A choose will weigh on Monday when the previous president will go on trial. (AP Photograph/Mary Altaffer, Pool) (ASSOCIATED PRESS)

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