Former President Donald Trump’s Truth Social could soon trade on the stock market with the ticker DJT. Here’s what to know.
Former President Donald Trump will soon be at the helm of a publicly traded company that will trade under the ticker “DJT,” after his initials, and boast a potential valuation of more than $5 billion — a lofty amount for a business that’s losing money and has scant revenue.
Trump’s next career move as head of a publicly traded company comes after shareholders of Digital World Acquisition Corp. (DWAC), a so-called blank-check company, , with the Trump Media & Technology Group. With the nod, DWAC will combine with Trump Media & Technology Group and could soon begin trading under the latter name.
Typically, investors put their money into companies they believe will provide solid returns for their investment, though time-honored fundamentals such as profit and revenue growth, dividends and share appreciation. But Trump Media’s main business, Truth Social, is a social media platform that is lagging rivals such as Facebook and “X” (formerly Twitter), with scant revenue and mounting losses, according to regulatory filings.
That hasn’t fazed investors in DWAC, some of whom appear to be supporters of Trump, who are touting the stock on Truth Social. “I am holding and not selling! I believe in TRUTH and MAGA,” one member of a Truth Social group focused on the DWAC stock posted on Friday morning.
Typically, a company with the financial profile of Trump Media & Technology Group would be hard-pressed to reach a valuation of $5 billion, but the stock does not appear to be trading on traditional financial mileposts like revenue and profit, said Kristi Marvin, chief executive of SPACInsider.com.
“This has never traded on fundamentals, and I don’t expect it to, going forward,” Marvin told CBS MoneyWatch.
