The Trump Media & Technology Group (DJT) has been making headlines with its impressive performance in the stock market. After soaring 16% on its first official trading day, the parent company of Donald Trump’s Truth Social platform continued its upward trajectory with a 14% increase on Wednesday.
This surge comes amid a resurgence of meme stocks, with DWAC reporting that Trump Media lost $49 million in the first nine months of last year but still boasts a market cap of around $8 billion. Other meme-friendly stocks like Reddit and GameStop have also seen significant gains recently, while riskier assets such as bitcoin and commodities have experienced growth since the start of the year.
However, not all stocks have been able to maintain their momentum, as Reddit and GameStop saw declines in Wednesday’s trade. Short interest in DJT stock is higher than average, sitting at about 11% of outstanding shares compared to the typical 3-4% range for public companies.
The success of Trump Media comes at a key time for the former president, who founded Truth Social after being banned from major social media platforms following the Capitol riots in 2021. With a stake in the platform worth about $4 billion, Trump will have to wait six months before cashing in his shares due to a lockup period imposed as part of the merger deal.
As Trump prepares for a potential 2024 election rematch against President Biden, the completion of the merger also coincides with his facing a fraud penalty and campaign fundraising challenges. Despite these obstacles, the future looks promising for Trump Media as it continues to make waves in the stock market.
For more updates on the latest stock market news and analysis, as well as financial and business news from Yahoo Finance, stay tuned for future developments in this ever-evolving story.
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