Trump Media & Technology Group, the owner of struggling social media platform Truth Social, is began its long-delayed journey as a public company at Tuesday’s opening bell under the ticker symbol “DJT.”

The stock surged about 56% at the open, to $78, and trading was briefly halted for volatility. Trump Media shares have since stabilized at around $70, marking a 40% increase from Monday’s close.

Wall Street is assigning Trump Media an eye-popping valuation of around $13 billion — a price tag that experts warn is untethered to reality.

The skyrocketing share price comes despite the fact that Trump Media is burning through cash; piling up losses; and its main product, Truth Social, is losing users.

“This is a very unusual situation. The stock is pretty much divorced from fundamentals,” said Jay Ritter, a finance professor at the University of Florida’s Warrington College of Business, who has been studying initial public offerings (IPOs) for over 40 years.

  • Ann Archy@lemmy.world
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    7 months ago

    WELCOME TO FINANCE! There are no rules, and if we break them, we remake them!

    This is a case where I literally both hate the player and the game.

    • UnderpantsWeevil@lemmy.world
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      7 months ago

      I just have to say, the folks at Reddit must be eating their own hearts out right now.

      If only they hadn’t shut down The_Donald, this could have been them.