Trump's Media Company Sees Impressive Wall Street Debut, Valued Near $8 Billion

Photo: Carlos Herrero

According to Reuters Donald Trump's media venture, the Trump Media & Technology Group, made a resounding entrance onto Wall Street, with shares soaring by up to 59% during its Nasdaq debut on Tuesday. This surge was largely fueled by fervent support from followers of the former U.S. president, potentially yielding significant returns amidst his ongoing legal battles.

Reaching a peak of $79.38 per share during the trading session, TMTG's market capitalization surpassed $10 billion, albeit based on an undiluted assessment. This valuation stands out considering the company's reported operating loss of $10.6 million in the first nine months of 2023, against a revenue of merely $3.4 million.

Closing at $57.99 per share, the stock boasted a 16% increase, translating to an overall valuation of nearly $8 billion. Trump's controlling interest in TMTG was previously estimated at around $6 billion, though restrictions on selling or leveraging his stake for six months may curtail immediate actions.

The market debut of TMTG follows its merger with Digital World Acquisition Corp, a special-purpose acquisition company (SPAC), a process initiated in 2021 but plagued by complications and delays. Together, Digital World and the newly public TMTG have witnessed an astounding surge of nearly 600% since the merger announcement, solidifying TMTG's status as a notable "meme stock" on Wall Street, often influenced by social media discourse.

Thomas Hayes, chairman of Great Hill Capital, remarked on the lofty valuation of TMTG relative to its operational performance but advised against underestimating its short-term potential.