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.

  • aidan@lemmy.world
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    8 months ago

    Every dollar you launder still has a risk of being caught, like I said, they have more pressing things to spend foreign currency on.

    • Kaefor@lemmy.ca
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      8 months ago

      More pressing than possibly owning the next American president? No, they don’t.

    • guacupado@lemmy.world
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      8 months ago

      What? Their money has literally impeded us continuing to give aid to Ukraine. Their investments are paying insane dividends.

      • aidan@lemmy.world
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        8 months ago

        Their money has literally impeded us continuing to give aid to Ukraine.

        Is there solid evidence of that?