Shares of Trump Media and Technology Group (DJT) rose 14% on Wednesday in their second day of trading on the Nasdaq (^IXIC).
Shares of the parent company of Donald Trump's social media platform Truth Social rose 16% on its first official day of trading on Tuesday. It has since become public to merge With special purpose acquisition company Digital World Acquisition Corp. In a deal approved by shareholders last week.
DJT's strong showing comes amid a rebound in meme stocks where some trades seen as lacking fundamentals have seen eye-popping returns.
According to a Securities and Exchange Commission filing from DWAC, Trump Media lost $49 million in the first nine months of last year and generated $3.4 million in revenue. At current levels, its market cap is now around $8 billion.
Other meme-friendly names like Reddit (RDDT) and GameStop (GME) have also seen massive rises in recent days while riskier assets like Bitcoin (BTC-USD) and commodities have soared since the start of the year.
Some names go back to the land. Reddit and GameStop fell by about 13% and 16%, respectively, in Wednesday trading.
Short interest in DJT stock — Bets that the stock price will fall rather than rise — amount to about 11% of shares outstanding, according to the latest data from S3 Partners. The average short interest in public companies falls at Range 3% to 4%.
The former president founded Truth Social after he was kicked off major social media apps like Facebook and Twitter, the platform now known as X, in the wake of the Capitol riots on January 6, 2021. Trump has since been reinstated on the platforms.
Trump will keep approx 60% share In Truth Social, a stake currently worth about $4 billion. The completion of the merger also comes as the former president faces a $454 million fraud penalty and is in trouble Deficit fundraiser As he prepares for a rematch in the 2024 elections against President Biden.
But Trump will have to wait before cashing in his shares.
Under the terms of the merger, stakeholders are subject to a six-month lock-in period before shares are sold or transferred. The only exception is if the company's board of directors votes to provide a special exemption.
Alexandra Canal He is a senior reporter at Yahoo Finance. Follow her on X @allie_canal, linkedin, And email it to [email protected].
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