Trump Media & Technology Group’s stock experienced a 17% rise on Wednesday, continuing its impressive performance following its introduction to the Nasdaq, with momentum largely driven by retail investors and supporters of ex-President Donald Trump. The company, which is behind the Truth Social platform, witnessed its shares increase by over 30% since they commenced trading on Tuesday following a merger with a pre-listed special purpose acquisition company on Nasdaq.
The company’s shares reached $67.69, propelling TMTG’s market valuation to $9.1 billion and enhancing the worth of Trump’s ownership beyond $5 billion.
Market analyst Susannah Streeter from Hargreaves Lansdown predicts considerable market fluctuations, suggesting that while initial enthusiasm from Trump’s base has boosted the stock, the long-term performance will likely be influenced by investors’ assessment of the company’s core financial health.
Truth Social reports approximately 8.9 million registrations, but it hasn’t disclosed its active user count, contrasting with platforms like X, which reported 238 million daily active users as of mid-2022.
In the meantime, Reddit, boasting 73 million active users, saw its market capitalization align with that of TMTG after experiencing a 10% decline on its fifth trading day since debuting on Wall Street the previous week.
Since the announcement of its merger with Digital World Acquisition Corp. in 2021, the combined entity has seen its value soar by over 600%, marking TMTG as a prominent example of Wall Street’s meme stocks.
