President Trump’s stake in the company is now valued at $4.87 billion, and owning the stock is perceived as lending support to the former president.
The stock performance of Trump Media & Technology Group (TMTG) blew past expectations as shares surged by more than 24 percent in the company’s first week of trading after going public.
TMTG, the parent company of Truth Social, started trading under the ticker symbol DJT on NASDAQ starting March 26 after earlier merging with Digital World Acquisition Corp. (DWAC). Shares of DWAC traded at $49.95 on Monday’s close. By the end of the week on Thursday, TMTG was trading at $61.96, up by over 24 percent. The stock market remained closed on Friday due to Easter.
President Trump holds 78.75 million shares in the company. At $61.96 per share, the former president’s stake in TMTG is now worth $4.87 billion, while TMTG’s market capitalization is at $8.39 billion. President Trump’s net worth was at $7.48 billion as of March 30, according to the Bloomberg Billionaires Index. He ranked at the 350th spot in the list of the world’s 500 richest people.
The performance of the stock has exceeded expectations, as experts predicted shares to perform negatively. Some pointed out that TMTG has not made a profit. The firm only made $3.3 million between January and September 2023. During this period, it registered losses worth $49 million.
TMTG’s fate is intricately tied to President Trump, as admitted by DWAC in a filing with the U.S. Securities and Exchange Commission (SEC) back in November. The company stated in the filing that if President Trump were to stop devoting “substantial” time to Truth Social, TMTG’s business would be “adversely affected.”
“TMTG’s success depends in part on the popularity of its brand and the reputation and popularity of its Chairman, President Donald J. Trump. The value of TMTG’s brand may diminish if the popularity of President Trump were to suffer,” it said.
“Adverse reactions to publicity relating to President Trump, or the loss of his services, could adversely affect TMTG’s revenues, results of operations, and its ability to maintain or generate a consumer base.”
