- Donald Trump’s media company traded in its first session post-merger.
- Trump Media & Technology Group trades under the ticker DJT.
- Trump Media owns the Truth Social platform.
- Trump’s stake in the company ended the day near $4.5 billion.
Trump Media & Technology Group (DJT) stock is off to another hot start on Wednesday. DJT stock has already risen 20% in the premarket to take out the $70 psychological level. Wednesday could experience yet another volatile day by the looks of it.
After shooting up above $79 early in Tuesday’s session, Trump Media fell back below $58. The company closed the session with a 16% gain, but this is somewhat surprising since DJT stock advanced as much as 59% during the session.
It was the first day that the formerly named Digital World Acquisition Corp (DWAC), the special purpose acquisition company or SPAC that merged with Trump Media, traded post-merger. The SPAC itself has traded on the NASDAQ since October 2021.
The equity market shrank conversely to DJT stock despite US Treasury yields falling across the curve. The Dow Jones was the best performer, dropping 0.08%. The S&P 500 fell 0.28%, and the NASDAQ retracted 0.42%.
Trump Media stock news
Former President Donald J. Trump, of course, founded the company, which owns conservative-oriented social media platform Truth Social. The company only had a little more than $3 million in revenue during the first three quarters of 2023, but some are betting that Trump’s persona will make Truth Social a niche contender with Mark Zuckerberg’s Facebook and Elon Musk’s X.
The merger arrives just in time for Donald Trump, who needs to come up with $454 million if his appeal in the New York civil fraud trial is unsuccessful. Trump lost his first round in court when the judge determined that Trump had illegally inflated his net worth on a number of occasions in order to receive loans from banks.
The elder Trump owns some 78 million shares of DJT stock, so his stake in Trump Media is worth more than $4.5 billion at Tuesday’s close, some ten times his nine-figure civil trial verdict.
Trump Media is still helmed by CEO Devin Nunes, the former California member of the House of Representatives who was close with Trump during the latter’s presidency.
A total of 53,482,409 shares of Trump Media stock traded hands during the Tuesday session out of a total of approximately 136 million shares. The best thing it has going for it is that Donald Trump has locked up the Republican nomination for president, so the social network and stock will likely feature in plenty of news over the next eight months through the election in early November.
Trump Media stock forecast
DJT stock spiked at Tuesday’s open but then spent the rest of the session drifting lower. DJT hit a daily high of $79.38 but closed at $57.99. The closin price was close to the high from January 23.
Expect several inside days over the rest of the week before traders have the chance to take aim once again at the Tuesday intraday high. Both the Awesome Oscillator and the Relative Strength Index (RSI) tell us that there is more room to run higher.
DJT daily stock chart
