Donald Trump's social media platform Truth Social (DJT) soared more than 30% in its first day of trading on the Nasdaq (^IXIC).
Shares of Truth Social's parent company, Trump Media & Technology Group, were trading above $65 shortly after the market opened Tuesday under the ticker symbol “DJD,” which stands for Trump's initials.
Company attached with special purpose vehicle Digital World Acquisitions Corporation (DWAC) in a deal approved by shareholders last week. Before the merger, DWAC was in the public market from 2021.
Truth Social was founded by Trump after he was removed from major social media applications such as Facebook and Twitter, now known as X, following the January 6, 2021 Capitol riots.
Trump owns about 60% of Truth Social, or nearly 79 million shares. That Rating may rise More than $3 billion, depending on trade conditions.
The merger comes as the former president faces a $454 million fraud fine. Lack of campaign fundraising He is gearing up to run for president again in 2024 against incumbent Joe Biden.
But Trump will have to wait before cashing in on his stake.
Under the terms of the merger, shareholders are subject to a six-month lock-up period before they can sell or transfer shares. The only exception is if the company's board votes to make a special distribution.
According to an SEC filing from Digital World, Trump Media lost $49 million in the first nine months of last year and earned $3.4 million in revenue.
As Yahoo Finance's Rick Newman points out, Short interest in DWAC shares – Bets that stock prices will fall rather than rise – accounts for about 11% of shares outstanding. Note that there is average short interest in public companies 3% to 4% range.
Alexandra Canal Senior reporter at Yahoo Finance. Follow her on X @alli_kanal, LinkedIn, and email [email protected].
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