HomeBusinessTrump's Truth Social to Debut on Nasdaq with DJT Ticker

    Trump’s Truth Social to Debut on Nasdaq with DJT Ticker

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    • Trump’s social media venture, Truth Social, is set to trade on Nasdaq under the ticker symbol “DJT” following a merger with Digital World Acquisition Corp.
    • Despite financial challenges and a small user base, the company holds a valuation of around $5.5 billion, with Trump’s stake estimated at $3 billion.
    • The success of Truth Social relies on growing its platform, while Trump faces legal battles and trading restrictions as a major shareholder.

    Former President Donald Trump is making history again in the field of business, this time with his new social media venture, Truth Social.

    The platform, born out of Trump’s expulsion from mainstream social media after the Capitol riot in 2021, is set to start trading on the Nasdaq stock exchange under the ticker symbol “DJT.” Here’s a breakdown of what’s happening:

    The Debut

    Truth Social’s parent company, Trump Media & Technology Group, is taking over Digital World Acquisition after a merger. Digital World was already listed on Nasdaq.

    The stock of Digital World surged 35% in regular trading before the debut.

    Trump’s stake in the company is estimated to be worth about $3 billion when trading starts, with the overall company valued at around $5.5 billion.

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    Also Read: Biden And Trump Win, Protest Votes Shake Democratic Support!

    Financials and Comparison

    Truth Social has faced losses since its launch in 2021, with revenue far lower than other social media giants like Reddit, which is valued at about $8 billion.

    While Reddit had over $800 million in sales in 2023, Truth Social generated only $3.3 million in revenue during the same period.

    Despite the difference in financials, the market price of Truth Social seems disconnected from its fundamental value, according to experts.

    User Base

    Truth Social has a relatively small user base compared to platforms like Facebook and TikTok. In February, it had about 494,000 mobile app users and 648,000 web visitors in the US.

    However, both mobile app users and web visitors have declined significantly compared to the previous year.

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    The success of Truth Social hinges on its ability to grow its platform, heavily relying on Trump’s personality and brand.

    Risk factors include Trump’s personal and business history, including previous bankruptcies.

    Trump’s legal battles, including a civil fraud judgment and defamation trial loss, add further complications.

    Also Read: February CPI Report: What It Means For You

    Trading Dynamics

    Experts predict volatile trading as Trump supporters buy and sell shares.

    Trump’s shares in the company have surged in value, providing him with financial leverage in his legal battles.

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    Trump is currently restricted from selling shares for six months, pending approval from the company’s board.

    Background on SPACs

    Digital World Acquisition Corp., the shell company merging with Trump Media, is a special purpose acquisition company (SPAC).

    SPACs offer an alternative route to going public without a traditional IPO process.

    The merger with Digital World gives Trump Media access to significant funds raised through public investors.

    Symbolism and History

    The choice of the ticker symbol “DJT” holds significance, as it mirrors Trump’s initials.

    This isn’t the first time Trump has been associated with a publicly traded company; in 1995, Trump Hotels & Casino Resorts went public but eventually filed for bankruptcy in 2004.

    Future Plans

    Trump Media’s CEO, Devin Nunes, pledges to continue building Truth Social as a platform for free expression and to challenge Big Tech censorship.

    With the merger completed, Trump Media is set to pursue its vision as a publicly traded entity.

    The launch of Truth Social marks a significant moment in Trump’s post-presidential ventures, blending politics with business in the ever-evolving landscape of social media.

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    Hritik Jorapure
    Hritik Jorapure
    Hritik Jorapure is a driven MBA graduate with a passion for all things business. With a keen interest in the dynamics of the corporate world, he delves into various aspects of business strategy, finance, and entrepreneurship. As an author at Prime Quill, Hritik covers the latest developments and insights in the realm of business, offering readers valuable perspectives on industry trends, market analysis, and innovative strategies. With a blend of academic knowledge and real-world experience, he brings a fresh and insightful perspective to the forefront of business journalism.

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