Shares of Trump Media & Technology Group (Nasdaq: DJT) surged today after the social media company finally completed its merger with Digital World Acquisition Corp. in a SPAC merger.
The stock surged as high as $79.38 today, and closed at $57.99, 16% higher than where the ticker it took over closed the previous day, and with a market cap of about $2.1 billion.
Image source: Getty Images.
Truth Social parent finally goes public
Years after the merger between Digital World Acquisition and Trump Media was first announced, the day of the combination has finally come.
Trump Media stock seems as much of a bet on Donald Trump and his brand as anything else. The business is led by former Congressman Devin Nunes, who said that "we built this company to protect the American people's voices and their freedom," and the company sees itself as an alternative to big tech platforms, billing itself as a free speech alternative.
In addition to Truth Social, the company also plans to launch TMTG+, a video streaming service focused on "non-woke" entertainment, news, documentaries, podcasts, and other programming.
Will Trump Media thrive or dive?
Truth Social was launched shortly after Trump lost the 2020 election and he was kicked off Twitter, but the business is only barely bringing in any revenue, according to an SEC filing. Through the first three quarters of 2023, the company reported just $3.4 million in revenue and a generally accepted accounting principles (GAAP) loss of $49 million, including $37.7 million in interest expense.
The company has just begun building its advertising base, but finding success in social media won't be easy as it faces stiff competition.
For now, Trump Media seems to be a litmus of Trump's popularity, but ultimately, the business will have to be successful in order for the stock to be a winner.
