Former President Donald Trump’s social media company, Truth Social, made a splash in the stock market on Tuesday as shares of Trump Media & Technology Group, the parent company, soared over 50% in its initial minutes of trading. The rapid surge prompted a brief trading halt to control volatility, but interest remained high throughout the day with the stock finishing about 16% higher. Trump marked the occasion with a post on his platform celebrating the stock’s performance.

The merger between Trump Media & Technology Group and shell company Digital World Acquisition Corp. was approved by DWAC shareholders on Friday, paving the way for the former president’s social media venture to enter the public market. The newly launched stock, trading under the ticker DJT, quickly garnered attention and was among the most actively traded stocks on the Nasdaq exchange. Trump’s net worth, estimated at over $6 billion, stands to benefit from the success of DJT stock.

Despite the initial excitement surrounding DJT stock, Trump faces financial challenges in the form of a $175 million judgment in his New York civil fraud trial. This amount was reduced from $464 million on Monday, but Trump stated that he has at least $500 million in cash. However, any potential windfall from DJT stock may take time to materialize as Trump is restricted from selling his shares for six months following the merger, unless the company’s board allows him to liquidate some of his stock.

Concerns have been raised about the financial health of Trump Media & Technology Group, which reported a loss of over $49 million in the first nine months of 2021 despite generating revenue of nearly $3.4 million. In comparison, X, formerly known as Twitter, recorded approximately $2.5 billion in revenue last year. The company’s financial performance will be closely monitored as investors assess its long-term viability and potential for growth in the competitive social media landscape.

As Trump’s social media venture continues to make headlines, the company must navigate challenges to sustain its momentum and deliver value to shareholders. The success of DJT stock could have significant implications for Trump’s personal finances, underscoring the importance of the company’s performance in the months ahead. With Trump prohibited from selling his shares immediately, the focus will be on the company’s ability to enhance its revenue streams and solidify its position in the digital media industry amid increasing competition.

Overall, the debut of Trump’s social media company on the stock market marks a significant milestone for the controversial former president as he seeks to leverage his brand and loyal following to drive success in the digital arena. The coming months will be crucial for Trump Media & Technology Group as it works to establish itself as a formidable player in the social media landscape and deliver value to investors eager to capitalize on the company’s potential for growth and innovation.

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